Football Index announces strategic plans for customer ownership relaunch

Documents released ahead of a High Court hearing today provide details on the proposed redistribution of funds in a £4.5m player protection account for BetIndex. The company is seeking a Company Voluntary Arrangement (CVA) and plans to distribute a 50% equity stake in BetIndex to existing customers with active Football Index portfolios when the company entered administration. Administrators believe the company’s business model is attractive and financially sustainable. Shareholders of Index Labs Ltd, the owners of BetIndex, would need to vote in favor of relinquishing control of the company to proceed with the CVA. The remaining 50% equity would be held by an investment trust to attract external investors who could potentially provide an exit strategy for customers through stake acquisition. Customers would also have the opportunity to become corporate members and vote for board members. The platform may transition to a pool betting license to ensure continuity, and dividend payments would continue through an archived share pool with suspended dividends for six months. All shares in the archive would expire after three years. The operator is optimistic about obtaining a new license from the Gambling Commission, but any license application would be subject to thorough examination. Under the proposed relaunch, players can expect to receive approximately 20.5p for every pound owed. BetIndex had previously mentioned its plans for restructuring in a statement after entering administration, expressing the goal of continuing the platform in a restructured form through collaboration with stakeholders.