It's been a long time since we released our original 'How To Make Money on Football Index Beginners Guide' back in early 2017. A lot has changed on the Index since then and so now is a good time to take an updated look for 2019 at the most important aspect of using Football Index which is of course, making money!
With the huge numbers of new investors signing up to the Index, we thought it would be useful to give those first starting out on building their portfolios a few helpful tips and some general advice. We're going to be taking a look at how the dividend structure works and which players are good examples of solid dividend buys. We'll also discuss player trading, when to buy, when to sell and things to keep in mind regarding your potential profit.
Let's begin with the Football Index dividend system to look at how Media and Match Day Performance points are accumulated to see how that determines the daily winner.
First let’s take a look at the Media Dividend.
The Football Index scans a number of online news RSS feeds to pick out headlines that have been written about footballers on the Football Index.
Football Index use an algorithm based on the AFINN-111 Sentiment Analysis system, which surrounds the number and quality of positive or negative ‘buzz words’ in the headline. This then gives a score that can range from a minimum of 20 points up to around 240 points.
The exact formula is 2 x (sentimentscore +1) x 10. So for example, if the Sentiment score in a headline equals 4, this would give 2 x (4+1) x 10 = 100. The Sentiment score includes the '+1' so that even zero point scoring headlines delivers at least 20 points. This would give us 2 x (0+1) x 10 = 20.
The general rule of thumb is that positive articles should generate higher points, but that isn't always the case.
Whichever footballer has the highest cumulative points total at the end of the day picks up the dividends. One thing to keep in mind here is that a player’s full name must be included in the main headline for the article to be tagged on the Index.
Up until the end of the 2018/19 season only the top 200 players qualify and are eligible for the media dividend, however from the start of the 2019/20 season, the whole Index will be opened up so any player can win this dividend.
For more details on the Media Dividend and an in-depth look at how the Football Index Media Rankings work, check out our previous article:
The cash returns on Media Dividends are relatively straightforward.
There are two different Media Dividend days –Single Media and Treble Media. Single days are the most common as this payout happens whenever there are qualifying performance fixtures on the same day.
The payout on a single media day is currently £0.02 per future to the winner.
Treble Media days occur when there are no qualifying Match Day fixtures taking place.
Payouts on a Treble Media day are currently £0.03 for 1st place, £0.02 for 2nd place and 0.01 for 3rd place. So for example if you hold 500 Harry Kane on a single media day his total payout would be £10.00, whilst a win on a Treble Media day, it would be £15.00.
Naturally, there are certain players who tend to find themselves near the top of the media dividend list on a regular basis and these players can help form a solid basis to a successful portfolio. They will usually come with a premium price of course – a couple of obvious current examples being Neymar and Paul Pogba.
Let's look at a couple of additional tips for making the media dividend system work well for you. First tip and perhaps the most notorious, is that the word ‘United’ scores positively on the Football Index scoring algorithm which has historically made Manchester United players favourites for returning the dividends.
Secondly there are a few players who have the luxury of having a one word name for example Neymar. This gives an advantage as any story written about him will be picked up by the algorithm as opposed to an article referring to Eden Hazard as ‘Hazard’ which would slip through the net and not score any points.
Match Day Performance Dividends
Match Day Performance Dividends are paid out based on the performance of each eligible player across a number of actions and events in each game. This is then calculated into points based on the criteria set out by Football Index to deliver an overall total score.
Performance Buzz is open to all players from every team in the top five European Leagues along with the Europa and Champions League competitions.
There are four payouts on each Performance Match Day.
There are the three positional payouts to the highest points scoring defender or goalkeeper, midfielder and forward along with an overall payout which is awarded to the highest points scorer across the board.
The benchmarks for dividend pay-out varies dependent upon the number of fixtures played on that day. With the added level of competition on busier match days, dividends are much higher.
There are a number of factors which determine the success around a player’s performance in the dividend. The current performance matrix favours players who score goals, have a high number of successful passes and take set pieces.
At Footy Index Scout we provide a free service with historical performance scores on every player, as well as vital information on upcoming fixtures. You can use our custom built planner to help decide which players are in-form and worth considering as an investment with detailed information on upcoming fixtures, injury status and player suspensions.
The criteria for the Performance score matrix, dividend table and further information on In-Play Dividends can be found at the following link:
Be sure to create a complete free account if you haven't already done so, and discover all the amazing tools and premium features custom built to help research your next purchase on Football Index!
Dividends in general are a great way to compound gains on the Football Index. They are paid out on a daily basis and can be reinvested to help grow your portfolio or taken out of the Index as cash. A successful portfolio will have a great mix of dividend returners and players who will appreciate in value, as we will now look at.
Now that we have the dividends covered, let's take a look at trading.
Making money trading players on the football index is pretty easy – buy low, sell high! Let’s look at how we can give ourselves the best chance of doing just this.
When it comes to buying players to trade on the Index, our main advice is to buy before the crowd – however, if it was that easy we would all be making tons of money! In general for traders to make money we need to buy (with good reason) before others and then sell after the price increase which follows.
There are numerous reasons why a player will increase in value from being in good form, an impending transfer or rumour, or showing promise as a youngster.
We will run through a case study in each category from recent times.
Good Form - Raheem Sterling
Raheem Sterling has really come to the forefront as one of, if not the most, important player for Manchester City in their quest for glory on multiple front in 2019. This hasn’t always been the case with his finishing has being questioned in the past along with his football intelligence.
However a countless number of influential performances plus over 21 goals and 16 assists at the time of writing has changed football fans opinion on him drastically in the last 6 months.
This has been reflected in his price on the Football Index. Available for just £2 a share 6 months ago he is now 6th on the Index at a whopping £5 a share – 150% in capital appreciation which far outpaces the general Index’s appreciation.
Rumours of an impending transfer – Bruno Fernandes
Bruno Fernandes of Sporting Lisbon has been in fantastic form this season contributing 19 goals and 14 assists in 36 appearances in Portugal at the time of writing. This has led to major transfer links to Manchester United, Juventus and PSG.
As he is currently playing in the Portuguese league he is not eligible for Match Day Dividends, however this has certainly not stopped his price increasing dramatically on the back of the rumours. This increase is for two reasons - not only should he be transferring to an eligible league for performance payouts he should also pick up some media interest along the way.
If we take the same 6 month time frame on Fernandes he could have been picked up at 50p a share and is now valued over 300% more at £2.15 per future.
Youngster showing promise – Jadon Sancho
Not many people had heard of Jadon Sancho when he made the move from Manchester City’s academy side to Borussia Dortmund at the end of 2017. Fast forward 18 months and now everyone has heard of him.
Dortmund threw Sancho straight into the first team and have been rewarded massively, as have traders who saw the potential back then. Now an England international and a regular in the Dortmund side performing so well in the Bundesliga he is an expensive £5.70 a share. He was available exactly a year ago at just 70p a share – a ridiculous increase! There are a number of similar examples and traders who can spot talent before others are sure to profit using this method.