Another Staking Q. - Profitability Analysis

[warrantofice]

I play poker on a regular basis at FTP, but only play cash games because i quickly loose focus in tournaments. I have a good friend who plays poker on a semi-regular basis that seems to do very well in tournaments, but he goes to school and general spends his money else where. My friend is also very honest. I am seriously considering sending him to next years WSOP main event...jks.
I am considering staking him in online touraments. I'm just wondering the correct procedure and if my proposition is profitable for me.

I plan on having him open a FTP account and give the password to me. Then I was planning on transfering 50 dollars per week into the account so that he could play two $20 sng's with 45 entrants each week. The plan then is to take any winning from the sng's and buy into the largest possible tournament each week.

Any winnings will be split as followed. 70% for me; 30% for him and of his 30% i will take out all the $20 buyins of upto 50% of his winnings.

Ex. played 10 sng's and we win $2000 = i get 1400 and he gets 600 - 200 (sngs) = $400 easy don't even know why i did and example.

So is this idea profitable for me? I am using this as a way to only risk a small portion of my bankroll in hopes of one day receiving a big payout. Does my plan make sense? Any feedback would be much appreciated.

warrantofice

[RonFezBuddy]

I think you're optimistic on how often he'll make enough money from SNGs to go to a major tourney.

15% of the field make the money in those SNG tourneys (7/45). Even if he's great, what's his edge? 25%? 30%?

That being said, how often is he making the top 3 which will actually afford him a shot to enter the $216 FT tourney? He pretty much needs to go 1/2 or most likely 2/2 in the top 3 to enter the sunday full tilt major.

I think you need to let him play more SNGs if he really is good. Otherwise he'll play the major maybe once a month or even less. then how often do you think the player with even a big edge makes it deep in the a sunday majors.

I agree, your risk is very limited and this is a good structure to keep it that way, but my sense is that it is too restrictive to really provide any value unless you get extremely lucky.

[warrantofice]

You make an excellent point. But i guess i didn't fully explain myself, whenever he wins a sng, be it $200 or $50 or $30 then that is the size of tournament that he will play. The biggest prize pool for the buy-in that he has. So I'm betting on him only making the ftp major every couple of months. But he should be playing for a 20k+ prize pool twice a month or so. So that will give adequate exposure to a 2k+ first prize. Yes, its a gamble, but is it a profitable gamble?

[KneeCo]

Honestly it doesn't sound like you have the BR to get into backing.

Also, I'm pretty positive the multiple/shared account thing is against the rules.

Finally, if you give him X$ and he turns it into Y$ which is enough to enter an MTT, I don't see how you should own 70% of him in the MTT, that seems like too much, because after he turns X into Y IMO he owns a share of Y (say 30%) at which point you aren't really buying him into the MTT, you are in truth only paying 70% of his entry (and if buying him entirely entitles you to 70%, then paying 70% should entitle you to less, .7*.7=.49=49%).

[warrantofice]

Excellent point about the percentage of ownership for the MTT tournament. I think i will revise it slightly than to a 60/40 split because i am the one fronting all the cash, and he otherwise would not be playing in these touraments. So i think it's only fair for me to get some sort of premium on my money.

Don't worry about my bankroll situation, i wouldn't be offering to do this to this if it affected me in anyway.

And i see you point about sharing accounts, its not really even necessary for me to have access with his password. Pretend i never said it.