Am being staked.....but... to return others' investment?

MaxSquat · #1 03-05-2005, 10:00 AM

I'll make it short and sweet....

I have a $140 buy in tournament tomorrow. I have two backers...one is staking me $70 (50%) and the other is contributing $35 (25%)...

How should I split the prize back to them? Should they get 75% of the winnings? How would you do it?

Thanks...

XChamp · #2 03-05-2005, 01:12 PM

This is something you should have decided before they backed you.

It all depends on how you compare to your fellow MTT player. Usually when I get staked it will be for something like this:

Backer pays 30% of entry fee and he receives 25% of net winnings. The first priority is for him to get his money back, however, so if I win less than the buy-in we will split that 30-70.

Example:

$140 tourney and my backer is staking me for 50%, We agree that he will get 45% of my winnings.

A- I end up winning $100, so I give him $50 (50%) and we go our seperate ways.
B- I end up winning $1,000. I give him $70 + ($1000-$140)*.45 = $457

I have found that most people have little clue about your EV for the tournament. This means it is sometimes difficult to negotiate a "fair" deal.

JaBlue · #3 03-05-2005, 03:48 PM

They bought shares of you. You give them the appropriate share of what you win. If you win 100$, you give the one guy 50$ and the other 25$. etc.

SoBeDude · #4 03-05-2005, 04:15 PM

that makes no sense linearly.

So if I buy 100% of your buyin, I get 100% of your winnings?

JaBlue · #5 03-05-2005, 04:26 PM

I didn't say that you should extrapolate this to all levels, but generally if people are buying shares of you, unless you agree otherwise, you should give them that share of the winnings.

SoBeDude · #6 03-05-2005, 06:17 PM

[ QUOTE ]
I didn't say that you should extrapolate this to all levels, but generally if people are buying shares of you, unless you agree otherwise, you should give them that share of the winnings.

[/ QUOTE ]

really?

I think its more at a 2-1 ratio. 100% buyin equates to 50% of the winnings.

-Scott

CardSharpCook · #7 03-05-2005, 07:45 PM

I was thinking player gets 10%, money gets 90%.

CSC

bearly · #8 03-05-2005, 08:13 PM

after all, the backer already has money, he doesn't need to gamble. on the other hand , you don't and therefore you do. unless you are a real expert, and have something to offer along the lines of some of the really fine players on this forum; i'd 1) try to make it into a loan, or 2)have them back you for all of it for 25-30% of the winnings. this is from someone who has seen literally hundreds of these "deals" go down in cardrooms over the last 40 years.............b

jsmith5 · #9 03-06-2005, 12:02 AM

i have done it both ways...for a while i had a long term agreement where the other party put up 100% and recieved 50% of my winnings + any entry fees they had previously posted.

when i sell shares i offer 75% of whatever % they bought. in other words, in a $500 tourney if they bought a $100 share, they would make $75 on every $100 that I made. the backers all generally liked this arrangement.