The Beautiful Game’s ‘Stock Market’, Football Index, has Licence Revoked
Football Index or the “stock market of football” as it is popularly known, had its license suspended by the UK Gambling Commission (UKGC) and the Jersey Gambling Commission, where owners BetIndex Limited is headquartered. This came after the betting company announced on 5 March 2021 that it had entered administration. As a result of the license suspension, customers cannot deposit or withdraw funds. Consequently, Nottingham Forest and QPR football clubs have dropped the shirt logos bearing the company’s name.
Administration Announcement Causes Price Crash
The events leading to the suspension started on 5 March – when Football Index put out a statement announcing changes in their policy that reduced payouts on players. This eventually led to a price crash. Multiple price crashes followed and put the crash into perspective. Jadon Sancho, a Borussia Dortmund player, cost £15.04 per share in early September. However, at the close of business on 14 January 2021, the price per share stood at £5.28, representing a massive 65% drop.
On 11 March, BetIndex Limited issued a statement announcing its move to enter administration. This was after the company sought the services of Begbies Traynor, insolvency practitioners. According to the company, the objective was to continue with services in a different structure while finding the best outcome for customers. This is how BetIndex ended up being suspended by the UK Gambling Commission as well as the Jersey Gambling Commission.
How Will Customers Be Affected?
Following the suspension of the two gambling licenses, customers will be unable to deposit or withdraw funds. Should the betting company go under, customers could be left staring at massive losses. However, BetIndex stated that customers’ funds are held in what it calls a segregated account – this is protected by trust arrangements already in place.
Both gambling commissions are keen on ensuring customers get their money back. On its end, the UK Gambling Commission statement announcing the suspension of the license said that it “expects” the company to offer fair treatment to its customers. This includes keeping them in the loop regarding any developments that affect them. Things are even stricter with the Jersey Gambling Commission. This is after the Commission reminded BetIndex of its obligations and that it remains bound to its license conditions. It added that it has a duty to “protect and return” customer funds.
Nottingham Forest and QPR Drop Shirt Logos
Football Index signed deals with Nottingham Forest and QPR that saw the company become the shirt sponsor for both teams. For the former, the deal was set to run the COVID-affected 2019-20 season, while the deal with QPR started before the season began.
On Friday, however, QPR announced that they will no longer display the Football Index logo on either the home and away shirts starting with Saturday’s game against Huddersfield. Lee Hoos, QPR Chief Executive, said the club had signed a one-year deal with Football Index and it was based on good faith.
He further added that after recent events, QPR would no longer display the company’s logo on its home or away shirt. On Saturday, Nottingham Forest will play Reading but is yet to issue a statement on the way forward regarding the sponsorship by Football Index.
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