Football Index has confirmed that they have entered administration after a recent market crash on the gambling platform. Reports suggest that over £10 million of customers funds are now locked up and unable to be accessed.
The website markets itself as the stock market for footballers and says that all trading on the platform, including withdrawals, had been suspended indefinitely.
The move comes after the company drastically reduced dividend payments to traders earlier this week with payments for some players reduced from 33p a share to 6p.
Football Index was founded in 2015 and is licensed by the Gambling Commission but it has now had its gambling license suspended until further notice leaving many traders in limbo as what money they have left is now inaccessible.
Many traders took to social media to express their anger with some traders losing significant five-figure sums.
— Si_FI (@SiFI50065872) March 7, 2021
As the platform surged in popularity last year, some players on the market such as Jadon Sancho, were priced at £15 per share. Sancho was worth £1 before trading was suspended late yesterday evening signalling a 93.3% decrease in value.
Football Index released a statement on Thursday evening stating that “after a difficult and challenging week” for its users, a decision had been taken “to suspend the platform”.
— Football Index (@FootballIndex) March 11, 2021
Football Index were the main sponsors for two EFL Championship sides, QPR and Nottingham Forest and the company also enjoyed prime advertising on advertising hoardings for Premier League games.
Football Index is classified as a gambling platform and it was also licensed and regulated by the Gambling Commission in the UK. The website however appeared to many as that of a market trading platform for securities.
Questions will be asked as to how the Gambling Commission, which regulates the betting industry in the UK, oversaw this collapse.