[bigfishead]

I was in a professionally run tournament staking deal at one time. All legal and everything.

Here's how it worked:

30 days in advance I would submit the events and buy-ins I wanted to play. If travel was involved that was my problem. As were any other costs.

If approved, I would receive a cashiers check for the amounts of the buy-ins.

After the events I would be required to submit a full report on each event. Player porfiles, problem hands, etc.
If I cashed in the event (each tournament was autonomous of the others), I would be required to take the tournament entry + fee out then we split the profits. 50-50

Hope this helps.