Below we have a look at the Football Index – an exciting new tool you can use to potentially profit from your knowledge of football.
Football Index – What Is It?
Occasionally you come across an idea that is so good – and yet so seemingly obvious – that you think “damn – why didn’t I think of that?!”
That was the case recently when one of our team was on the tube in London on his way for a night out and he came across an advert for something called Football Index.
Intrigued by this, our colleague had a look at it on his iphone when he got above ground again and discovered something new, original and exciting – and yes – something he wished he had thought of!
Basically the Football Index is a stockmarket for football players.
You can buy and sell players and potentially make money if their value goes up after you buy them.
It is a remarkably simple tool to use and for those with a good knowledge of football and its players, a chance to use that knowledge to make some money, plus have some fun at the same time.
How Does it Work?
When you enter Football Index, this is the main interface you will see:
The interface is pretty simple to use once you’ve had a look around and got used to the various aspects of it. The main features of the site are:-
– The Main Stock Market (1st Team)
– The Buzz
– The Squad
We will have a look at each of these three in turn:-
The Main Stock Market (1st Team)
Below is a shot of the main screen of Football Index, where you will see the players listed much like you would a list of stocks on the stockmarket:
There are 200 players in this list from all across Europe. All the big names you would expect – Messi, Ronaldo, Neymar, Aguero, Costa and so on are included.
Recently they have also added every footballer from the top five European Leagues (Premier League, French Ligue One, Spanish Primera Liga, Serie A and the Bundesliga) and European competitions (Champions League and Europa League) available for sale on the index, so there is now a huge range of players to choose from.
Next to the player’s name, you can see the buy and sell price for one share.
Shares in a player are called “futures” in Football Index – probably because technically you are not buying shares in a player, that is for people like Kia Joorabchian. What you are doing is taking a position on the value of a player on an index – or a “future” in other words.
To buy a future in a player, it is pretty simple, you just click on buy and then choose how many futures you wish to buy.
From the screenshot above for example, you can see that futures in Antoine Griezmann are priced at £5.45 to buy one future.
So if you wanted to buy 10 shares in the Frenchman for example, it would cost you £54.50.
You can buy a maximum of 100 shares in one transaction.
To sell a player, you click on the sell button and then request for your futures in that player to be sold. Sales are not necessarily instant as there will have to be a buyer, but most of the time we have found it doesn’t take long.
Football Index will then take just 2% in commission for the sale.
As with buying, the maximum number of futures you can sell in one transaction is 100.
What Determines if a Player’s Price Goes Up or Down?
Now you may be wondering what determines whether the price of a player goes up or down.
Well, quite simply it is demand – much like the stockmarket itself.
If lots of people are buying a player, their price will go up and if lots people are selling a player, their price will go down.
Simple as that!
So it’s not based on how many goals a player is scoring or how well they’re playing like in fantasy football – although of course someone playing well is more likely to have greater interest in them and therefore greater demand.
The bottom line though is that the price is based purely on demand, not on performance. Important to remember!
Dividends – The Other Way to Make Money
The other way to make money on Football Index other than buying and selling players is through dividends – which can be very lucrative if you have the right players.
There are two ways you can earn dividends and these are:-
- 1. The Buzz
- 2. Performance Stats
We will now look at each of these in turn.
1. Dividends for The Buzz
The first way you can earn dividends is through something called “The Buzz.”
This is basically an index of how much media coverage a player gets in a 24-hour period.
Football Index use a combination of 25 football news feeds tracked in real time and aggregated and weighted to give a score, which you can see an example of in the table below:
At the time of writing, N’Golo Kante is leading the Buzz with 820 points. This is down mainly to him winning the Football Writers’ Player of the Year Award, which has just been announced.
Last week, Emre Can won it after his incredible overhead kick against Watford and Christiano Ronaldo won it (two days in a row) for his hat-trick in the Champions League.
And Marcus Rashford won it (again, for two days in a row) after his superb free-kick goal against Celta Vigo in the Europa League semi-final.
So you can see, the Buzz award generally goes to a player who has performed particularly well or is in the news for another reason.
Over the Summer, we expect that players who are involved in big transfer stories will probably be topping the Buzz.
Dividends for the Buzz are awarded in the following way:
- On matchdays the top player on the Buzz will receive 5p per future.
- On non-matchdays, the top player will receive 8p, the second 5p and the third 2p.
So, a nice way to earn some additional income from holding futures in a player!
2. Dividends for Performance Stats
The second way you can earn dividends in Football Index is through performance. The performances of players is ranked using statistics and the best defender, midfielder, forward and overall performer receive a dividend based on how many matches there are that day, ranging from 4p right up to 12p.
So for example if a player you own futures in wins the best midfielder and best overall on a busy matchday (15 or more games in the qualifying league), you would receive 18p per future held (12p for best midfielder and 6p for top overall performer).
Here is a look at the full breakdown of performance dividends:
Performance dividends were introduced for the 2017/18 season and represent a massive boost to the amount of money you can earn from Football Index.
It will also spread out the dividends much more to players across the European leagues, where as the Buzz dividends have been awarded heavily towards Premier League players and the top 4 or 5 players from elsewhere (Ronaldo, Neymar, Messi etc).
In addition to the main 200 players listed in the First Team, there is also the Squad.
The Squad is a list of hundreds of other footballers who haven’t quite made the grade into the First Team. This list was significantly increased from 1st November 2017 with the introduction of players from across the top five European leagues.
What you can do is cast a vote for players in the Squad and then the two most popular players every Friday are ‘promoted’ to the First Team, to replace the two lowest priced players in the First Team.
This means there will always be 200 members of the First Team.
Trackers – A Tasty Way to Buy Footballers
Another feature of Football Index is the “Tracker” option.
This is not, as you may be thinking, some kind of football-branded chewy hazelnut snack, but is in fact a means of buying a group of players at once.
So for example, you could buy the top 10, or top 25, players in the index at once without having to purchase them all separately.
You can even buy the top 50, or top 100.
This is much like tracker funds on the stockmarket, where you can buy index funds that track the FTSE 100, or S&P 500, for example.
How Much Money Do I Need to Invest in Football Index?
The minimum deposit is £10 to get started and the good news is that you can start buying players for under a pound at the time of writing, with even the top players being around just £5 a future.
So really it’s much cheaper than the actual stockmarket to get involved in.
Plus for a limited time only, Football Index are offering a risk-free £500 for 7 days – so any money you lose in the first 7 days following your first deposit will be refunded up to maximum of £500! (please see Football Index for full terms and conditions).
Our Early Thoughts on Football Index
We have only just come across Football Index recently but we think this is a great idea and could be an exciting way to trade on football that offers something different to traditional betting.
As a bit of fun, we are going to start our own portfolio of £1,000 and track our results live on the site here to see how we get on.
Our initial ideas – which may of course turn out to be complete bunk – are as follows:-
1. Players’ values seem to rise pretty quickly – have a look at some of these graphs below:
Firstly from Antonine Griezmann:
Then from Gabriel Jesus:
And then from Romelu Lukaku:
These are six month charts we have used, which you can get by clicking on any player in the list.
As you can see, their values in the last six months have gone from around the £1 mark right up to around £5. That’s quite a big rise – not even Apple or Facebook have seen those kind of rises in their share price in a six month period!
Anyway, it doesn’t mean of course that this will be repeated, but we look at some players lower down the list who are valued in the £1 – £2 range and could see similar trajectories if they hit some form.
So clearly there is potential.
2. It could be worth buying players right after they have done something special – in the examples above like Rashford against Celta Vigo or Ronaldo after the Champions League semi-final. Not only can you get the rise in the value of the player you would expect, but you can also collect the dividends. In those two cases, they won the Buzz two days in a row!
3. The tracker indexes could be good long term buys. If the Index is based on demand, then hopefully as Football Index gets better known and more people buy into it, then values should go up. This, we should be clear, is only a theory – and of course it may not get better known. But we think there is an good chance it will, so a tracker would be a nice way of covering a wide range of players and cashing in on the overall demand for the top players.
Anyway, as we say these are just our theories and we will test them out in a live trial of our own to see whether any of them pan out! Stay tuned for that.
Summary – The Football Index
So there you have it – the Football Index, the world’s first football stockmarket.
We are quite excited about this and think it could be a real winner.
We appreciate it’s quite a lot to take in when you are coming to it afresh, so here is our summary of how it works:-
– You can buy and sell futures (i.e. shares) in 200 top footballers from around the world
– The value of these players is based on the demand for them on Football Index. The more people that buy a player, the more their value goes up.
– You can also receive a dividend of 5p for every future you hold in a player who gets the most news coverage in a 24 hour period in “The Buzz” – an amalgamation of 25 football news feeds
– Players can be promoted and relegated from the Top 200 list – “The First Team” – by people voting on players from the “Squad,” which is all players below the Top 200.
– You can start playing with just a £10 deposit and buy players for under a £1.
– Football Index will refund trade losses up to £500 in the first 7 days following your first deposit (terms and conditions apply).
So there you have it, hopefully that has helped explain things and you are now good to go.
As we say with all forms of gambling – and please be aware that this is a form of gambling – you could lose money so please gamble responsibly.
We look forward to hearing how some of you get on with it and as we say, we will be recording results of our £1,000 trial portfolio live here on the site.
Hopefully we will be able to turn into significantly more, but whatever happens it should be fun to try anyway.