staking deal good or bad?
Join Date: Mar 2007
Posts: 902
Hi,
A friend of mine referred an mtt-player to me for staking.
I'm a bit out of touch with poker staking and the deal he proposed seemed odd to me, i'd like to know what you guys think about it:
He wants to share the buy-ins 60:40 and the profit 50:50.
E.g. 10$ tourney, he pays 4, i pay 6, profit shared 50:50.
He wants to settle every month, from the way he wrote (he called the buy-in share a markup of 1.2) i assume with no makeup but i will ask about that.
Under this deal i would break even when he has an ROI of 20% (and its even worse when there is no markup), so this seems pretty bad for me.
What are usual deals nowadaway and what are possible ROIs for good, but not great players for ABI 20$, 50$, 100$ on stars (and maybe other sites)?
What downswings can i expect at these levels?
Also i assume rakeback is usually given 100% to the horse? He didnt mention it.
Thanks!
PS: Sorry if wrong froum, please point me in the right direction!
Join Date: Aug 2012
Posts: 1,670
Totally depends on how good he is and what ABI he is playing. Just assuming he's playing some reasonable stakes it seems like a pretty bad deal. 20% ROI is kind of what you'd expect nowadays if you took a sample of solid winning regs. Even if he's good enough to overcome the 20% markup, it's probably still not be worth it for you to take on so much variance for a very slight return. He'd have to be a really top tier player to make it worth it.
Join Date: Feb 2015
Posts: 1,115
If yu have to ask, don't do it.
Join Date: Nov 2010
Posts: 258
don't overcomplicate things , sharing buyins 60:40 seems like a rip-off
all you need is a starting bankroll for him (you guys agree on what % each players puts in ) , # of games he'll be playing per week/month for x months and a profit split (50 50 seems a decent starting point) that might be increased in his favor based on his results .
yeah rakeback usually goes to the horse 100% unless he grinds a low roi/heavy rakeback format like 6 max hypers or cash games .
Join Date: Mar 2007
Posts: 902