How do you calculate a staker's share of profits? - Beginning Poker Questions

Two Plus Two Forums Poker Strategy Beginners and General Questions

How do you calculate a staker's share of profits?

Post Reply Subscribe

...

08-07-2017 , 12:43 AM

Soebr

enthusiast

Join Date: Nov 2015 Posts: 98

This is something that feels like it should be elementary but I have zero faith in my math ability.

If a friend wanted to put you in a higher buy-in MTT and wanted to receive 50% of profits in exchange for 50% of the risk, what would his payout equation look like?

As an example:

2x $11 buy-in tournaments which you cash for $70 total.

Spoiler:

Quote

08-07-2017 , 04:23 AM

TreadLightly

Pooh-Bah

Join Date: Oct 2013 Posts: 3,709

2 x 11 = $22 in buyins
he is buying 50% at no markup = $11 paid to you (half)

You cash for $70 so $70/2 = $35 split each(half)

Quote

08-07-2017 , 04:51 AM

silverfox432

journeyman

Join Date: Jul 2009 Posts: 285

Quote:

Originally Posted by TreadLightly

2 x 11 = $22 in buyins
he is buying 50% at no markup = $11 paid to you (half)

You cash for $70 so $70/2 = $35 split each(half)

I think this is wrong

Backer stakes you for 2 x $11.00 T's

You cash for $70 BR now = $70.00

You return $22.00 to backer leaves $48.00 / 2 = $24 is yours and you return

$22.00 + $24 = $44.00 to backer

Quote

08-07-2017 , 06:31 AM

venice10

Referee

Join Date: Nov 2007 Posts: 25,855

Quote:

Originally Posted by TreadLightly

2 x 11 = $22 in buyins
he is buying 50% at no markup = $11 paid to you (half)

You cash for $70 so $70/2 = $35 split each(half)

Correct answer. The simplest way to think about it is that the day before there was $22. He put in 50% of it. Today, there is now $70. He gets to take out 50% or $35.

I don't think this is really a "math" problem but more of it, "hey, I put in a lot of time and feel I should should get more than $35" problem.

Quote

08-07-2017 , 01:22 PM

ArtyMcFly

Carpal \'Tunnel

Join Date: Dec 2014 Posts: 13,256

When making an arrangement with no mark-up, just specify it's always X% of the buy-in for X% of the cashes, not the profit.

e.g. If you mincashed for $11 in the first game but bricked the second, and villain had 50% of your action, you still have to give him $5.50, such that you both lost money this time round, but not the entire amount.

Quote

Post Reply Subscribe

...