Well well well…. what a day for the Index!
This day will certainly mark the turning point for the index, enabling New Traders to take advantage of the lower prices on the index.
This post will completely strip down the mechanics of the split, include my reaction & explain more about it in general. It should be quite useful… I hope, anyway!
What is the Share Split?
Let’s go right back to basics. The Share Split Announcement. You can take an in-depth on my full Football Index Share Split Guide Here
To be as basic as possible if you don’t have time to read the above, A Share Split will multiply your shares held by 3, then divide dividends by 3, to nullify any effect. It’s exactly the same in essence, as 1 Share earning £0.03 would earn you exactly the same as 3 shares earning £0.01. I really would advise reading the above to get a full grasp on things.
When is the Share Split?
On the 26th March 2019, the Index will change forever! This is when the Share Split is implemented, at 06:00AM to be precise! I have the date bookmarked, pencilled in my diary & even got a reminder set on my phone… but when I wake up and see my Neymar’s at £7 a share, I think my heart may freeze a little! haha!
Why have they performed a Share Split?
The FI bosses have decided to perform a share split due to Player/Price growth. To get 100 Shares in Paul Pogba, it currently costs over £2,200. This isn’t very attractive to new users, and could actually stunt growth. If someone joins and wants to add Pogba to their account, but can’t due to financial reasons, they may not use the index at all!
Share Splits makes the best players (the ones that earn you money!) more affordable, which overall helps to keep the market growing.
What is the Share Split ratio?
The split being performed is a 3 for 1 split. If you own 1 Paul Pogba, it will become 3 Pogba’s, worth a third of the cost. Your portfolio will remain identical. Not up. Not Down.
Is there a change to Media Buzz?
There is! This is a big one, but not as big as I initially thought personally. I was always against the idea of Media Buzz being opened up, so that my portfolio can be protected (Pretty Media Heavy Portfolio). However, looking into it, I can see how new users can also be easily confused by the fact that there’s a Top 200 AND a Squad Players section.
This has now been solved by the Index tech team. From the start of the 2019-20 Season, Media Buzz will be open to ALL players. That’s right, if he’s on the Index, he can win Media Buzz Dividends.
Football Index have added some case studies, which prove that the Squad Players being able to win Media Buzz don’t really affect things at all.
Only 7% of all Buzz Wins would have came from players which were in the Squad Players section. That really isn’t much of a problem to me!
If you are still concerned by the fact that all players will be able to win Media Buzz, the next part might be a nice read.
Are there any dividends changes?
Yes, yes yes!
Dividends are going up! Here is the attached dividend payout sheet for payouts post share split.
I have also worked out the increases between pre and post split.
In Play Dividends have achieved a huge boost really, with them getting an 85% increase in payouts.
Match Day Performance Buzz has a 25% increase, with Media Buzz & Triple Media Buzz getting a 20% increase.
So although 7% of the time, your player may not win, when he does win, it’s going to be 20% more!
My thoughts on the Share Split & New Dividend announcement.
Initially, I was a little knocked back by the thought of players in the Squad Players section being able to earn Media Buzz. However, I am a seasoned trader, who knows all of the mechanics etc.
I can also see just how hard it can be to understand that In play dividends are eligible until this time, Media Buzz Players only in the Top 200 can win Media, Match Day Performance Buzz can be won by all…
There’s a lot to learn for new traders. This makes it one step easier.
The thought that the FI bosses have seriously considered this, showing us that 7% of the time squad players would have won, is also impressive.
To combat any losses, they have also increased dividends, which really is the icing on the cake.
The Share Split needs to happen. The Share Split is happening.
The Share Split will happen again…. growth permitting!