Investing in Greg - the big payoff and IRS

[midas]

Table rumor from last night at Foxwoods was that a $1000 investment in Greg payed $50,000.

Also, we know Greg had backers - did he get to take the entire $5 million home or did the IRS take their cut at the casino? Since Greg's a lawyer and now very high profile - I assume that all the backers and the IRS received full disclosure on any distibutions!!!

I wish I had their tax problems!!!!

[HavanaBanana]

1000$ into 50 000$ sounds a bit little doesn't it?
But if he had 50 backers/shares with 1000$ each then taking half the profits for playing it would be 2 500 000 divided by 50 000 which means 50 000 per share so it might be correct.

ToT

[Legend27]

Why would Greg have backers when he won the seat from pokerstars in the $150 double shoot-out?

[RollaJ]

As I understand, he took investors in his game/results for the long term, not just that one tourney. This is all stuff I have read online though

[GWB]

This is my guess based on what I have read:

The deal he offered in 2002 was (after initial investment repaid):

35% to Greg for time/effort
65% to backers based on share

Greg did not "sell" 100% of himself, so he gets a big chunk of the 65% too. And the $10,000 buy-in price or $150 qualifier price means nothing, they were just a small part of many investments in many games. So a $1000 investment may only mean a 2% share in Greg.

[Dynasty]

[ QUOTE ]
Why would Greg have backers when he won the seat from pokerstars in the $150 double shoot-out?

[/ QUOTE ]

This has been answered many times, including by Greg himself, in many threads over the last few weeks.

[Legend27]

I was just asking about the main event. I know he's had backers in other tournaments but it doesn't make sense for this one since he won for $150 bucks. Unless he let people back him after the fact he already knew he was in and just wanted some insurance. Which doesn't make sense to me. Well ok it does but I wouldn't do it, not for that much.

[GWB]

Its like a share in a corporation, they buy into his poker career for a year or more at a time. They have a share in everything he does poker related, since it all comes from a pool of money he and the backers created. So how much money it took to win a seat doesn't matter, it comes from the pool of money backed by his backers.

[Dynasty]

And I was just giving you the answer that if you want it to make sense, go find the answer in the other threads, especially the ones responded to by Greg himself.

[Legend27]

I've read most of greg's posts on here. I must have missed the one's that explained it like GWB did.