Fair Terms for a Stake

[DrClaw]

I have been propositioned to stake a poker player who plays lower stakes than I do. He seems to do well, and I am interested helping him get going and making a few hundred on the side.

What's a fair deal if I stake this player for, say, 1/2NL Hold'em? Do I give him the money and take a cut for the next X months? Do I absorb the loss but take X% of the profit, plus expect to be paid back the stake? Do I stake him long term with many buy-ins or short term for a few? What is standard policy here, I'm not really sure?

Please move this if its not posted in the proper forum. Thanks.

[LiveInPeace]

There are a few ideas here:

http://forumserver.twoplustwo.com/showfl...=2#Post12022736

[Lottery Larry]

[ QUOTE ]
I have been propositioned to stake a poker player who plays lower stakes than I do. He seems to do well, and I am interested helping him get going and making a few hundred on the side.

What's a fair deal if I stake this player for, say, 1/2NL Hold'em? Do I give him the money and take a cut for the next X months? Do I absorb the loss but take X% of the profit, plus expect to be paid back the stake? Do I stake him long term with many buy-ins or short term for a few? What is standard policy here, I'm not really sure?

Please move this if its not posted in the proper forum. Thanks.

[/ QUOTE ]

Staking arrangements are better documented elsewhere (you might be able to dig up on RGP as well).

I would say it depends on the solvency of the horse. Obviously he doesn't have a bankroll, or this wouldn't come up. Can he pay off loans?

if not:

- Losses are on you, up to whatever cap you want

- Winnings are 75/25% at the lowest, until he pays back your TOTAL investment (and maybe a small profit).

- 50/50 after that. He's still playing on your money stake (a decreasing percentage, possibly), but you're leveraging your money in a way that your normally couldn't (at least you get to brag that you have your very own human bot). So, you're both invested, and gaining, via the agreement.




There are a LOT of things to consider:

- How trustworthy is your horse? No stack dipping and phantom losses, please.

- Will he stay that way, after 75% goes to you?

- When does he get to drop his backer and play his own bankroll? During his time in the stable, or only after? His choice, or yours?

Be very clear about this, or you risk problems down the road.