The math on PP Steps Rake

[TheNoodleMan]

By my calculations (assuming everyone buys in at level 1) Party Poker rakes a total of $4,545.83 from every full cycle.
Here is my math, any corrections to this are welcomed with open arms.
Starting at the top and working backwards:
level 5: PP rakes $650 ($65 * 10 players)
Level 4: PP rakes $875 ($35 * 10 players * 2.5 Tourneys to fill one level 5)
Level 3: PP rakes $937.50 ($15 * 10 players * 6.25 Tourneys to fill 2.5 level 4's)
Level 2: PP rakes $1041.66 ($5 * 10 players * 20.83 Tourneys to fill 6.25 level 3's)
Level 1: PP rakes $1041.66 ($1 *10 players * 104.16 Tourneys to fill 20.83 level 2's)

I know this is kind of ambitious for a first post and I'm asking to get shot down, but I figured it was about time to quit lurking and start contributing.
If anyone sees anything wrong with my math, please correct it.

[Roman]

many people buy in directly though, so not exactly true.

[TheNoodleMan]

I acknowledged that, but does the rest of the math look right?

[Pat Southern]

If everyone is only buying into the Level 1, how can they rake any other tournament other than level 1? Wouldnt the rake solely be what they take at Step 1?

[TheNoodleMan]

No, you have to take the later levels into account because it is money that is not paid out at the end.

[viennagreen]

with that logic, you must consider the "worth" of each prize pool paid out at each step.

step 1-- $ collected= $110, prizes awarded= (2) entries to step 2 = $110........... Party gains $0

step 2-- $ collected= $550, prizes awarded= (2) entries to step 3, (1) step 2 entry, and (1) step 1 entry + $3 cash = $499...... Party gains $51

step 3-- $ collected= $2150, prizes awarded= (3) entries to step 4, (1) step 3, (3) step 2, (1) step 1 + $3 cash = $2049... Party gains $101

step 4-- $ collected= $5350, prizes awarded= (4) step 5, (1) step 4, (3) step 2, (2) step 1 + $8 cash..= $4998... Party gains $352

step 4-- $ collected= $10650, prizes awarded= $4500, $2500, $1800, $1200 = $10000... Party gains $650

*********
I don't see any other way to calculate Party's Rake on the STEPs tourneys than to calculate what they make on each individual level. And on each level, Party's rake appears to be less than 10% (except for Step 2, where the rake is 10.2%). At least by my quick and dirty math... So STEPs appears to be a very good deal for the player.

Someone correct me please! I have heard that these STEPs had a horrible rake, but never thought about it until now.

[viennagreen]

I don't know how you would go about calculating a "rake" on an entire cycle though--- i don't even think it's correct to think of the STEPs as a cycle....

[TheNoodleMan]

While I agree with your take on the per level rake, I think you have to view it as a cycle since you can't cash out until the end.

[Huskiez]

[ QUOTE ]
step 1-- $ collected= $110, prizes awarded= (2) entries to step 2 = $110........... Party gains $0

[/ QUOTE ]

Just to let you know, entry fee at Party SNG Step tourneys is $12, so Party gains $10.

[MrPotatoHead]

I didn't really look at your maths, but from just glancing at their website you are getting way too complicated.

There are 10 or 20 players in each tourney so everytime one is run Party makes 10 or 20 times the rake. Its as simple as that.

They clearly state what goes to the prize pool and what goes to the rake for each level. The only thing that could be confusing about it is that sometimes the money comes directly from the players, other times it comes from the prize pool of a previous step tournament they placed in.

http://www.partypoker.com/news/events/steps-challenge-04.html

[Pat Southern]

Here's how I see it. Assuming everybody buys in at level 1, and according to your numbers that it takes 104.16 tourneys to fill up a step 5:

If they run 104.16 tournaments, they take in 104.16*10 (players)* $12 (buyin)= $12499.20 they then pay $8800 of that out to the players. For a $3699.20 profit

[viennagreen]

thanks--- i haven't played any of the steps myself...