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%).