QPR and Nottingham Forest cancel shirt sponsorship agreement with gambling company Football Index amid the platform’s administration that has left users of the stock market app furious
- QPR have agreed to cancel their shirt sponsorship deal with Football Index
- The company has been gripped in turmoil following the extreme market crash
- Football Index announced that dividends would be reduced by around 80%
- The move from the virtual stock market has seen users lose huge sums of cash
- The company then went into administration earlier this week to add more fury
- Nottingham Forest have also ended their agreement with Football Index today
QPR and Nottingham Forest have both terminated their shirt sponsorships with under-fire virtual gambling platform Football Index with immediate effect.
The London club have sported the company’s logo on their home and away jerseys this season, having signed a one-year deal in the summer, while Forest revealed their own agreement was the ‘biggest’ of its type in their history.
However, in the wake of the fierce backlash that has met Football Index, and its subsequent collapse into administration, the two Championship clubs confirmed their respective agreements have ended.
QPR have terminated their shirt sponsorship with Football Index with immediate effect
A statement from QPR read: ‘Queens Park Rangers Football Club can confirm they will no longer be carrying the Football Index logo on the front of their shirts, effective immediately.
‘The Football Index platform was suspended on Thursday and the company subsequently announced they would be entering administration.
QPR CEO Lee Hoos said: ‘As a football club we entered into a one-year agreement with Football Index in good faith.
‘In light of recent events, the front property of QPR’s home and away strips will no longer sport the Football Index logo.’
Forest have not yet released an official statement confirming the move, but Sportsmail understands they will also part ways with Football Index.
The deal, penned last year, was set to run down at the end of the season.
QPR agreed a termination of the agreement following Football Index’s suspension this week
Administrators Begbies Traynor have been called in with Football Index in dire financial straits – despite its consistent assurances to the contrary to its customers.
The Gambling Commission revealed on Friday morning that Football Index’s licence has been suspended.
Football Index slashed dividends to investors on Friday by around 80 per cent, a decision which sparked widespread condemnation from investors.
All activity on the platform, including deposits and withdrawals, will be suspended until the administrators are officially installed.
An explosive statement from the gambling firm admitted that the move may see equity issued to investors and a new management team put in place.
The site is advertised as a stock market for footballers – but its future is now clouded in uncertainty.
The Gambling Commission admitted concerns that ‘activities may have been carried on in purported reliance on the licence, but not in accordance with a condition of the licence, and that Football Index may not be suitable to carry on with licensed activities.’
Nottingham Forest have also ended their partnership with shirt sponsor Football Index
The regulator is not expected to comment on the matter again during their investigation.
Despite the now-exposed chaos behind the scenes, Football Index told users that, in its five-year history, the platform had ‘never been in a stronger financial position than today’.
This was a stark contrast to an email sent to shareholders from founder Adam Cole, which was seen by Sportsmail and admitted the company suffered ‘significant’ losses throughout January and February.
Football Index has also come under fire after continuing to ‘mint’ and issue new share in players in the days leading up to the bombshell announcement that dividends would be cut.
The football trading app faced a backlash after prices on buying and selling players were dashed and the company then went into administration, leaving traders short changed
A Begbies Traynor spokesperson labelled the situation as ‘complex’ and spanning multiple jurisdictions including the UK, Jersey and Gibraltar.
They added: ‘As such we and the board are working closely with all relevant authorities, including the Gambling Commissions in the UK and Jersey on this.
‘Our goal is to find the best outcome for the company, and all of its various stakeholders.’