Football Index has this morning confirmed that it has entered administration, suspending all trades on its platform.
Issuing a player update, Football Index confirmed that the decision had been taken following consultations with the Gambling Commissions of the UK (UKGC) and Jersey (JGC).
Last weekend, Football Index was hit by a ‘customer exodus’, as traders withdrew accounts from its platform following its decision to slash dividends on individual transactions.
The decision would lead to an instant drop in football player valuations, and shrink returns for its traders, with many claiming to be out of pocket by thousands of pounds.
This morning Football Index communicated that it seeks a ‘restructuring arrangement’ to satisfy all corporate stakeholders, including its player community.
Football Index has recruited insolvency practitioners Begbies Traynor to seek the best ‘outcome for customers’, in which the company aims to maintain its player trading platform in a ‘restructured form’.
“Until such time as the administrators are in office, the platform will remain suspended and no trading or payment transactions, such as deposits and withdrawals, will be possible,” Football Index communicated.
“Once in office, the administrators will be in contact with customers, creditors, and other stakeholders. This interim step of suspending the platform is merely to ensure that everyone’s rights are preserved in relation to funds held by BetIndex Limited.”
Football Index reassured all customers that existing cash balances had been moved to a ‘segregated account’ safeguarded by administrators, who would communicate with them personally regarding their liabilities.
“The Board have at all times been seeking the best way to sustain the platform as we believed a recovery was not only possible but also in the best interests of our customers.
“This decision is deeply regrettable and is the outcome we were seeking to avoid by restructuring dividends. However, we believe it is the most responsible route forward for our community given the situation as it has developed.”
In a move viewed by critics as way too late, the UKGC announced this morning that it has suspended the company’s licence which has lead the Betting and Gaming Council to also suspend the firm’s membership of its standards organisation.