Re: Standard Agreement When Staking Someone in Poker (HELP PLEASE!)
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1) 60-40 for staking
2) 85-15 or 80-20 for lending
Do those numbers make any sense?
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If the 60% is for the banker yes, if the banker is getting only 40% there is no way I'd put my money up.
However by the next part of the question I can only assume that the 40% is for the banker.
Now the 80-20, side....
How liquid and accessible is the collateral?
(breaking legs does not count)
The assessment of risk and speed of pay back should have some influence on the terms.
Low Risk <= 15%
High Risk >= 20%
Something along those lines….
Total entry fees versus first prize, the ratio would also have to be considered.
Past performance of the player, what percentage that you have finished in the money with events of similar size?
Really in business a good deal is a state of mind.
The other side of the coin is if the banker has deep pockets he may get a thrill of having a piece of a big event. That’s entertainment value on his part which would shift the percentages to your advantage.
If he has a big ego and if is an ESPN event, you have vanity at play if he believes he might get air time. That’s also a shift for you…
I think a lot of this is what you can put together as a plan and how you can sell it.
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