Sponsoring a friend

[WellChief]

Hi,

I'm considering sponsoring a friend of mine to play online, he's a profitable multi-tournament player and also cash, but doesn't have a lot of disposable income to play himself at the moment.  Thing is I don't have a clue what would be a fair deal in terms of split?  I was thinking 50/50 split on any profit if I provide 100% of capital might be fair, but I really don't have any experience in these things so would appreciate any opinions.

[Ironside]

if you are putting up 100% of the funding i would expect 70/30 or 80/20 depending on the buy in level

[totalise]

the best deals are generally those with make-up.. ie one session he loses $1k, the next he wins $2k.. yur net profit is $1k so 50% is $500. Dont do it on a session-session basis

chopping up any profits on a monthly basis is typically the best way to do it.. he banks a profit, you bank a profit, and he has a roll to continue playing for the next month.

Also, if you are going to do this, set up an account for him to play on that has rakeback.. if he is playing with a high turnover, even when he breaks even or loses small for a month, you will typically end up making money.

If you are just thinking of doing it on a tourney by tourney basis, then you need to get a better deal, like 65/35, but for a long period with make-up.. 50/50 plus rakeback is a good deal for you (if he is a winning player of course)

[Dingdell]

I know that a well known player who was recently sponsored was before their commercial deal sponsored by another player.  The agreement was 60% to the sponsor, 40% to the player less any expenses. Nor quite the same on line but it meant he didn't over order on the mini bar.

[WellChief]

Yeh Totalise it would definitely be on a monthly basis that the profits would be sorted out, I think I'll stick with the 50/50 deal then. After all there's not much risk for me, and i'm very likely to make a profit for doing nothing.

[totalise]

Yeh Totalise it would definitely be on a monthly basis that the profits would be sorted out, I think I'll stick with the 50/50 deal then. After all there's not much risk for me, and i'm very likely to make a profit for doing nothing.

rakeback is somethin you really want to capture.. if he is going to play for maybe 4/5 hrs a day, u are looking at something like £1 kish a month in pure r/b, so its not a marginal thing. In some backing deals I have been privy to, its the most important thing.

[WellChief]

Yeah you are right, he has an account that he gets rakeback on so I'll probably just transfer money to him and he can deposit into it himself.

[ACE2M]

http://www.cardplayer.com/poker_magazine/archives/?a_id=12837

http://www.cardplayer.com/poker_magazine/archives/?a_id=15333

two excellent articles on staking.