Football Index – Investing In The Football Stock Market
The Football Index is the worlds first football stock market. It allows you to buy and sell shares in top level footballers from around the world.
Alongside trading the share prices of famous football players, the Football Index also allows you to earn dividends from shares that you own.
Dividends are payed out based on how much exposure a player is getting in the media and also from their performances on the pitch. These dividends are payed out based on a scale known as “media buzz” and “matchday rankings”
Football Index Overview
Joining and starting to build your football stock market portfolio is a pretty simple process.
Once you have registered and created your account you can login.
The layout and interface is really clean and easy to use.
You have the main features of the site as menus in the middle.
- Top 200
- Squad Players
- Live Rankings
- Watch List
On the right hand side of the screen there is updated information regarding players that are rising in price. Alongside the winners of the buzz and match rankings dividends.
Lets take a look at some of the main features of the site.
The top 200 is fairly self explanatory in name. It is a list of the top 200 listed players on the football index from all over Europe. On this screen you can see a price listed to buy and a price listed to sell. This is the price per share or “futures” as they are called in the Football Index.
There is a maximum of 100 shares that you can own in each player. In order to purchase shares in a player you simply click the buy button and choose how many shares you want.
Selling is also very straight forward. You click the sell button and select how many shares you wish to sell. The Football Index finds a buyer for these shares and adds a 2% commission fee.
The top 200 features number one ranked Lionel Messi at a top price of £8.88 per share.
To the newly ranked PSG youngster Presnel Kimpembe.
When looking at potential players to invest in. You can check on the price movement going back as far as a year. Look at short term price trends and general information regarding the player supplied by OPTA.
What causes price movements in players?
Price movement is determined by the demand for a player.
For example Harry Kane has been in great form the last few months. Which has caused people to buy shares in his name. This demand has seen his price steadily increase in the last 3 months.
However should Harry Kane get injured for the rest of the season or suffer a goal drought it is likely the majority of people would be selling his shares and his price would lower.
When looking at buying shares in a player this is one key factor to remember. It is the demand of player that will increase or lower their price point.
The squad players menu is a list of players outside of the top 200. These are players with a low price ranging across the major European leagues.
It functions exactly the same as the Top 200 menu. Allowing you to buy and sell shares in a player.
Live rankings is where you will find ratings for the media buzz and performance dividends. This aspect is the most interesting part of the football index.
It is where I believe that there is money to be made over the long term.
Lets take a look at the two ways you can be paid dividends from the Football Index.
Media Buzz –
Media Buzz is an index of how much media coverage a player receives within a 24 hour window.
The Football Index uses a combination of 25 different football news feeds. When a player is featured in these news feeds they earn a points score. The more media coverage a player receives the higher they will rank in the media buzz.
Currently Lionel Messi is the leader in the media buzz index.
Last night Barcelona played Valencia and Messi scored a clear goal which wasn’t given by the referee. Later on in the game he went on to provide the assist for Jordi Alba to level the game 1-1 in the final 10 minutes.
You consistently see the likes of Messi, Neymar and Ronaldo featuring at the top of the Media Buzz rankings. Due to the fact that they are the most popular players in the world and are featured heavily in the media.
The top ranked player in the media buzz ranking will be paid as follows.
1st place 12p per share
2nd place 5p per share
3rd place 2p per share
Match Day –
The match day rankings are a performance based index. OPTA stats are used by the Football Index to rank the best performing player in defence, midfield and striker positions. The dividend payouts range from 4p per share up to 12p per share.
This differs depending on how many games are being played that day. Which you can see detailed in the image below.
If you are willing to take long term approach to investing in the Football Index then these dividends are a great way of generating profits.
This menu simply allows you to see your current portfolio within the index.
You can see that my current portfolio is showing an overall loss of -£2.46.
This is due to the price of the shares in each player dropping. With Lukkaku and Rashford especially going through quite periods at the time of writing. Meaning that the demand for these players isn’t currently at a high.
My strategy for these players is to hold on to them over the long term. As these are players that are quite frequently featured in the media buzz rankings. Over the long term there is a high percentage chance that they will be earning both media and performance related dividends.
Given the quality and youth of all four players I do think long term they will be profitable buys.
Watch list is simply a list of players that you can highlight to keep track of.
There might an emerging player you want to keep track of. Or perhaps some transfer rumours are circulating and you want to see how it effects a players price.
Football Index Strategy
I have only just dipped my toes into investing in the Football Index. But I can see some potential to make good profits over the long term. The media and performance dividends are what sells the platform for me.
My approach which is a fairly passive one. Will be to focus on holding players that are likely to feature in the media and performance dividends rankings regularly.
The Football Index itself is growing at a pretty consistent rate. Which you see in the overall price rise in the majority of the top 200 players ranking over the last year.
For example a year ago you could have purchased shares in Messi and Neymar at just over a pound each. Which are now available to sell at £7.91 and £6.93.
Should this trend continue it is likely just holding on to the most popular players in the index will see a long term profit made.
I will update my progress from my initial £100 investment in the Football Index next month.