Collapse of Football Index leaves customers £90m out of pocket

The dramatic collapse of Football Index left customers more than £90m out of pocket in the biggest gambling business failure in British history. 

Fans of the self-styled ‘football stock market’ piled thousands of pounds each into the platform on the promise of returns that beat traditional investments. 

But the firm, founded by former pornographer Adam Cole, 70, collapsed into administration in March, with some users left nursing losses of more than £100,000. 

Losses: The firm collapsed into administration in March, with some users left nursing losses of more than £100,000

A report by administrators Begbies Traynor, which will be made public next month, has revealed the firm only had £11.7m in assets, meaning players will only get a fraction of their money back. 

The platform allowed gamblers to buy ‘shares’ in professional footballers and receive dividends based on their performance. They could then trade them with other punters for profit, paying a small commission to the platform. 

Victims piled money in on the promise of ‘guaranteed yields’ and returns that beat traditional investments. In total there were £124.5m of open bets when the platform was suspended, according to administrators, who calculated customers were ultimately left £90.5m out of pocket. 

Victims have hired specialist lawyers from Leigh Day, who are investigating ahead of a potential group action against the firm and its directors. Begbies Traynor declined to comment. Football Index were contacted for comment.