Last night, the wait was finally over and my first reaction was a feeling of relief. This announcement had to be simple whilst adding value to the full platform. In my opinion, it has done exactly that and more.
Match Day Extra
The new payouts do fail to cover for the loss of IPD, but there is no doubt in my mind that these new dividends will add more value to players longer-term and also add more value to the platform as a whole.
Next time your player just misses out on winning dividends, you will at least be in with a great chance of winning some consolation dividends in the form of Match Day Extra dividends.
With the current low prices and high dividend payouts (That doubled earlier this season) - it is no surprise to see a small dividend payout introduced. But, it is the fact that Football Index is focusing back on the product's USP and incentivising the long term hold which is most pleasing to me.
Will Match Day Extra dividends increase in the future? I would expect so for two reasons:
Prices are currently much lower than what I expect to see in the future
Football Index appears to be refocusing on the foundations of the platform.
Football Index now has three performance dividends which are all tightly linked to the matchday scoring table which sets us up perfectly for a time of stability, whilst Football Index cracks on with sorting out NASDAQ integration and finding various ways of improving liquidity.
Who to buy following the Match Day Extra dividends?
Earlier this week, I started to analyse a lot of data to find the most valuable players based on match day scores 200+. Part of the reason I carried out this research was that I anticipated Football Index adding something that would reward strong performances.
The payouts from Match Day Extra dividends are not actually very high and so my advice at the moment when attempting to earn dividends in the short term would just be to focus on finding potential match day dividends winners as usual. These players will naturally have a good chance of accumulating some match day extra dividend wins over time and are arguably around 10% more valuable now with these additional dividend payouts.
For context, Football Index will now be paying out 20p per week via MDE. Since the start of the 2020/2021 season, Football Index has paid out an average of £2.14 per week (Excluding International Breaks due to no performance payouts).
This week I created 3 new sections on Football Index where you will find videos covering my current top picks across different positions. Below are the up to date prices:
Lionel Messi £4.49 / £4.08
Neymar £5.02/ £4.55
Robert Lewandowski £1.83/ £1.56
Lorenzo Insigne £1.70 / £1.29
Serge Gnabry £1.52/ £1.19
Ciro Immobile £0.69/ £0.52
Willian £0.33 / No Bids
Joshua Kimmich £6.12 / £5.59
Kevin De Bruyne £2.67 / £2.41
Toni Kroos £1.75 / £1.23
James Maddison £1.46 / £1.16
Luis Alberto £1.39 / £1.14
Daniel Parejo £0.91 / £0.71
Trent Alexander-Arnold £2.91 / £2.60
Andrew Robertson £2.26/£1.93
Alphonso Davies £1.68 / £1.28
Achraf Hakimi £1.38 / No Bids
Sergio Reguilon £0.67 / £0.49
Removal of uncirculated shares
Although this does not actually impact player's value, this move by Football Index is symbolic of how they are going through a process of cleaning up and simplifying the platform again.
With Mike now at the wheel and a new year upon us, it is starting to feel like a fresh start from Football Index and the beautiful vision of huge, future, growth is slowly starting to return.
Limited Supply and Issuance Update
In terms of the long term future of Football Index, this was a huge update. Firstly, it helps Football Index make future cost projections, but also makes shares more scarce which longer term could lead to an even greater demand for players with the best yields.
However, the fact that Football Index will no longer be minting new shares when prices surpass all-time highs (ATH) does mean that they no longer have such a strong incentive (In the form of revenue) to mint shares at higher prices. This doesn't align with our goals and so this is my main concern from yesterday's announcement. Though, of course, it is in Football Index's best interests for prices to be as high as possible as they generate much more in commission at higher prices. So, overall this isn't a great concern to me. At the end of the day, we need Football Index to do whatever they need to do for their financial stability as this way we all win the long run.
Football Index will now be releasing new shares into the market based on projected yields of footballers, market sentiment and stability. Overall, I think this gives Football Index some more control over the market, but I will leave my views on this offering customers more 'transparency' until we see how this works once introduced on 20th February.
It is also worth pointing out that only Jadon Sancho is anywhere near having 1,000,000 shares in circulation. For further estimates of shares in circulation, check out the data in the spreadsheet below.
*This data has been created using the Master Table from our friends at Index Edge.
To get the estimations of shares in circulation for players, I worked out Sancho's peak price, £15.21, minus his IPO price, £0.10, to work out that £15.11 worth of shares have been minted. It appears that around 608 shares will move a player's price 1p which results in there being 918,688 Sancho shares in circulation which is in line with what FI mentioned in yesterday's announcement. Using this we can work out estimations for all shares on the platform.
Shares in Circulation Excel Spreadsheet
Shares in Circulation Google Spreadsheet
Key Points on shares in circulation
8 players have 500,000+ shares circulating in them
26 players have 250,000+ shares circulating in them
201 players have 100,000+ shares circulating in them
Terms of service update
Finally, I am really pleased to hear Football Index refer to how they aim to make 'incremental improvements' to the platform. This will help dispel any rumours that something massive is coming. I also believe that Football Index will now continue to work on improving the platform and over time confidence of many traders will return leading to growth.
This should help remove some of the uncertainty that has lingered for a while now.
Overall, yesterday's announcement was very positive as it shows Football Index are heading in the right direction. But, I do hope they get the minting of new shares right and if they do start to create 'tournaments' in the future as they hinted at - they keep things simple.
Onwards and upwards!