Today we have been treated to another great Football Index announcement, providing plenty of reasons for traders to buy players over the next few weeks and tomorrow in particular with a 10k cash drop!
Full details of today's announcement can be found here: https://trade.footballindex.co.uk/marketannouncement-20200423/
The initial reaction from traders to this announcement has been to buy Bundesliga players. 'The Bundesliga is ready to return on May 9th if the German government gives it the green light' according to Sky Sports News.
The lower threshold in games that have to be played to qualify for the different tier match days could could make some Bundesliga players more favourable holds in the short term. Although, this will depend on the fixture structure. Given there are 18 teams in the Bundesliga, even if all teams play on the same match day - it will still be a silver match day and not a gold match day.
Therefore, the rise in Bundesliga players, is to some extent built more on hype and speculation than a strong change in Bundesliga player's potential to earn dividends.
We have seen a huge amount of Bundesliga players already increase in price recently and a few of these players may rise further due to the increased exposure they gain with no other leagues playing and the opportunity to earn Match Day and In-Play Dividends in the short term that other players do not have.
However, some of these players will not perform particularly well and given the recent rises, there may now be better opportunities in the market elsewhere.
Key points to takeaway from today's announcement
Gold Match Days are now days with 10+ football matches, Silver Match Days are now days with 4-9 football matches and Bronze Match Days are now days with 1-3 football matches for the rest of the 2019-2020 season
5 Media places will be paid out every single day (Including match days) until the 31st May
10k cash drop is taking place tomorrow (24.04.20)
Media Dividend deadling has been extended to 8pm
Anticipation of the Bundesliga returning combined with the greater enthusiasm from the market for match days returning has led to Bundesliga players becoming relatively expensive compared to similar players across the other 4 leagues. Today's announcement ignited further enthusiasm and has led to a strong market trend towards Bundesliga players which is something to avoid getting too caught up in. Timing entries and exits of such players will be key. More on timing here.
Many of these players may well sustain their higher prices, but better opportunities may now be found in other leagues where players are yet to rise so much.
Following the end of the bonus period, some players who have risen huge amounts recently may be listed by traders who are happy to take their profit on these players. It is unlikely we will see a great drop tomorrow though as many traders will be re-investing their bonuses, many traders will be spending to enter the '10K Cash Drop' and the spreads will of course reduce sales too. Overall, the footie may even continue to climb.
FIC Approach to the current market:
Buy potentially valuable Bundesliga and 2.Bundesliga players which could stand out over the next few weeks, but are yet to rise
Consider which type of players from the Bundesliga have risen recently to compare to similar players across the other 4 PB leagues
Monitor which of the other 4 PB leagues could return next
General focus on young, quality players who appear reasonably priced