Critics Pan Plan to Resurrect Football Index with Customer Ownership

A programme to resurrect the stricken Football Index political program past giving customers equity in the business organization is “insulting” to those who lost money and were “misled” by the company.

That’s according to Matt Zarb-Cousin, theater director of Clean Up Gambling, who is advocating for former customers of the soccer trading platform. The program would effectively “force Football Index users to make up for the favor of taking over a worthless company,” Zarb-Cousin claimed.

Football Index’s direction team filed documents to London’s High Court cobbler's last week outlining the strategy to uprise the platform. The homage will in the end determine how finances in a £4.5 million ($6.4 million) player-protection account statement testament follow distributed.

Football Index collapsed inward ahead of time March, owing its players around £90 gazillion ($127 million). Other courtyard documents, filed as section of on-going insolvency proceedings, paint a picture the company’s trading operations were unsustainable.

Market Collapse

Football Index launched in 2015, marketing itself as a association football “stock market” where users could buy and sell notional “shares” inward pro soccer players. These would vacillate in economic value depending in real-world factors such as player execution and transpose value. Successful traders were paid “dividends” related to the performance of their shares.

But lawcourt documents show up that past the summer of 2020, Football Index had overreached itself. The companionship was drug-addicted on unexampled deposits to compensate its liabilities.

The companionship doubled the dividend payments inwards a bid to draw in to a greater extent deposits, but this meant it could non masking the £2.2 jillion ($3 million) it owed in dividends each month.

When Football Index announced inwards March it would be slashing deposits by 80 percent to ensure long-term sustainability, traders panicked and the market place collapsed. Average item-by-item losses are estimated to be around £3,000 ($4,120) each.

Massive Marketing Spend

The company was supposed to donjon more than 2 thirds of customer stakes break from operating costs, but it did not hold fast to this policy.

Instead, judicature records show, it spent almost a fifth of its revenue on marketing and had expensive jersey sponsorship deals with II side Football League teams, Queens Park Rangers and Nottingham Forest.

According to courtroom filings, the troupe prescribed insolvency specialists Begbies Traynor tercet weeks before its give but continued to encourage customers to deposit money.

Football Index marketed itself as a smarting way to create money, a product for savvy investors that mired less lay on the line than regular sports betting.

Law steadfastly Leigh Clarence Day is currently exploring the possible action of legal process on behalf of traders who missed money.