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 07-23-2012, 08:10 AM #1 stranger   Join Date: Jan 2009 Posts: 2 ROI formula for Tourneys is there, or has anybody worked out a formula for optimum ROI on GTD prize money v's entry fee and number of players. e.g. A \$15 buy in with say 16K Gtd prize money how manny players are optimum to get the best possible chance of cashing? If theres a formula Id love to know it so I can sit at the lobby page and enter tourney when its most profitable ( may mean playing in differant time zones though )
 07-23-2012, 06:33 PM #2 grinder   Join Date: Nov 2009 Posts: 422 Re: ROI formula for Tourneys Um... the smallest number of players that will not result in the tourney being cancelled?
07-23-2012, 08:12 PM   #3
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Re: ROI formula for Tourneys

Quote:
 Originally Posted by gerryq Um... the smallest number of players that will not result in the tourney being cancelled?
Yes, but there is a bit more that can be considered.

Given prize of P, buy-in of B and N players, all of equal capability, the expected prize amount per player is P/N and therefore the expected profit per player is P/N –B. ROI is expected profit divided by investment so ROI = (P/N –B)/B = P /(NB) – 1

Simple Examples :

T1: P = 100, B= 10, N=8: ROI = 100/80 – 1 = 20%

T2; P = 200, B = 18, N= 12: ROI = 200/ 216 – 1 = -7.4%

From a strict ROI basis, tournament 1 is preferred to tournament 2 even though T1’s fee percentage relative to the prize amount is higher (10% vs 9%).

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