I made this post in the HSPLO forum
Quote:
Originally Posted by Quasar30
I got some great advice from roy, mig, antchev, donkey_king and iggy a couple of months ago when i asked about what terms would be reasonable for a staking deal.
Now i have another potential deal, but this will be different.
* I am staking him 75 BIs for PLO200.
* 250k hands.
* Update every monday - graphs, shipping me my share of the profit if i not choose to let it stay in the BR etc.
* Coaching...i will be coaching him 5 hours/month.
First we thought about 40/60(backer) profit, makeup, 40/60(backer) rakeback.
Is this fair? Or should we have it in a way where the % changes depending
on his results?
Like 40/60 on PLO200, 42/58 on PLO400, 45/55 on PLO600, 50/50 on PLO1k, 55/45 on PLO2k.
(He moves up at a BR of $22k, $33k, $55k, $110k)
If he wins at a rate of 5bbs/100:
PLO200: It will take him 70k hands to reach PLO400. My profit $4.2k.
PLO400: Another 55k hands to reach PLO600. My profit = $6.38k.
PLO600: Another 73k hands to reach PLO1k. My profit = $12.1k.
PLO1k: 52k hands left of the total 250k hands. My profit = $13k
If we assume he rakes $0.2/hand (a little lower than normal, right? But he will also be playing some on a site without rakeback or bonuses.)
Then my profit from the rakeback would be.
0.2 * 250k * 0.5 * 0.6 = $15k,
And my total profit = 15 + 13 + 12.1 + 6.38 + 4.2 = $50k
But this assumes no one of us cash out anything of the profit during the entire stake.
This will not be the case which probably will lower my return quite a bit, maybe to $40k.
He said he will be cashing out a small part of his share each month.
I will probably let most, if not all, of my share stay in the BR.
Also, this scenario of him winning at a rate of 5bbs/100 during the entire stake has to be in the top 25%, at least, of all possible outcomes, or something.
Most of the times he will be on PLO200-400 for the entire stake which lower my profit a lot, and maybe 20%? of the time he loses the $15k.
So im putting up the initial $15k and coach him about 50 hours and the return for a scenario in the top 25% would be about $40k.
(guessing you need to know my coaching rate to comment on the deal...like >$500/hour...but i dont really know)
Is this a fair deal for both of us?
What are the standard terms for these long stakes which include coaching?
edit: I did at least one mistake in the calculation. The rakeback will be a part of the BR, allowing him to move up faster, and reducing
the negative effect of him cashing out. My return in this scenario would be $50-60k, not $40k.
Quote:
Originally Posted by Ben86
no experience staking for cash games but want to point out that i think its a v bad idea to raise his percentage everytime he moves into a tougher game because his expectation is going down.
Quote:
Originally Posted by antchev
Looks good to me. I'll advice to make his percentage higher based on winrate, not on level played.
And one poster preferred a flat percentage deal.
What is standard, flat or increasing percentage?
But no one seemed to have an idea about
how the percentages should change depending on his winrate.
What is fair in your opinion?
(if necessary assume that his winrate up to this point has been 2-3bb/100 on PLO200)
Last edited by Quasar30; 09-09-2010 at 12:36 AM.