Quote:
Originally Posted by Cornell Fiji
We should also discuss make up. For those who aren’t aware make up is similar to debt but not the same thing. Make up is what you are down on your backing arrangement, but not necessarily money owed to your backer. That is to say, if you are in make up for $50,000, and have a net worth of $100,000 and for some reason are no longer able to play poker, you do not owe the backer $50,000 out of your own money. As far as leaving a backing arrangement in make up for no reason goes, unless you are under contract there isn’t necessarily repercussions in the traditional form of something like a lawsuit (or broken legs) but there are factors to consider. First of all if you leave a backer while in make up for no good reason it is very unlikely you’ll ever find another backer since word of your actions will get around. Also, some would consider this unethical, and it is a considerable grey area of morality. While you indeed have the right to opt out of your staking arrangement while in make up for no legitimate reason, the damage it will do to your reputation in the poker community is something you need to weigh it heavily against. A backer and a player need to set the conditions of what happens when a player is in make up but wants to change or leave an arrangement ahead of time.
Answering your PM ITT (adding on):
In general, one-time tourney stakes rarely work out to 50/50 without make up (we're talking about typical players seeking staking here), because it's tough for a lot of players to have the edge needed to even make it a breakeven proposition for the backer.
With multiple tourneys like you're talking about, it's a little different, but at the same time you need to figure out what your edge really is, and then you can sort out what kind of split makes sense to your backer so he can expect to earn a profit commensurate with his risk, and is worth your efforts at the same time. Typically, a 90-10 split isn't going to be worth it to the player at all. By the same token a backer doesn't want to have a player freerolling at his expense. Now I don't know what your situation is so it's not for me to say what's fair, but a lot of first-time stakers wind up putting their $ out there without really thinking it through.
And that's not to say that 50-50 no makeup deals don't happen for long-term arrangements, by the way. Just that with the typical crowd we're talking about here that's usually not the case and I'd be really sure about your player before touching that. Those are cases where you can be fairly confident of a long-term profit by the stakee despite bumps in the road - if I staked a high-volume SNG player (proven winner at limits staked for) for 60 days, there's far less chance makeup will need to be an issue. As the stakee, it's probably best if you really spend some time getting a good feel for the basics. A good, well-thought out deal for the both of you will keep everyone happy, and help curb any hard feelings or future problems.
Also you could have a partial-make up deal too, it doesn't have to be for 100% of the stake.
Last edited by Gonzirra; 02-16-2009 at 07:34 PM.