Is this a fair backing deal?

[GoodOL]

I won a cabin for the PPM V cruise (no entry). I figured, if I'm going to go on this cruise, I should play in the main event....however, I cannot comfortably afford the entry fee. I read many posts here regarding backing deals. I would like the opinion of other players/investors who have arranged deals.

The deal: The player receives 35% of winnings and investor receive 65% of winnings (after receiving initial investment back). Player covers all expenses.

To give you an idea of my poker background....I have been playing limit Hold'em cash games ($3/$6 to $10/$20; 10 seated and 6max; online) full time for over two years (part time experience prior). I have read/studied about twenty books related to poker strategies and have analyzed the game on my own. I have played about a million hands and have consistently turned a profit. I feel that I am at the top of my game and would have an edge against many of the casual players that won entry (as well as hold my own against the top players).

Do you think the above deal is fair? Investor intially offered 0% to player and 100% to investor (partial investment) which is not even close to fair (I'm covering expenses, providing my time and expertise, etc). I offered a 50/50 split but investor said that I don't have a proven track record at major tournaments...so, he rejected. The above deal is the latest offer.........

Thanks!

[Miggo]

I'm interested in hearing the answers to this too. Mainly the part where it gets around to taxes. You have to account for taxes somewhere in the deal. You can say after taxes, but is there an easy way to figure out what this will be without waiting until the end of the year to split up any possible winnings?

Lets say buy-in is $1000, player and backer each put up $500, for a 50/50 split on profits. Now lets say the player cashes for $10,000. Do you add in the $10,000 to your income in last years Turbo-Tax and see what happens to your return and how it was affected? Say you have to pay $4000 more in taxes doing that. So the player keeps $4000 of the $10K, plus $3K for half the winnings of 6K after taxes, and the backer gets $3K? Just curious.

[72hearts]

It doesn't seem like the worst deal in the world to me considering your lack of live tourney experience. The expenses on the cruise could add up. What is the buy in for the event and what do you expect the expenses to be? I think a fair deal would be for him to either pay both the buy in and expenses, and recieve 70% of your winnings, or for him to just pay the buy in, and recieve a smaller percentage. I think a 70 / 30 cut is fair if he pays for everything. 65/35 isn't terrible considering you are paying expenses but I might try and look for a 60 /40.

[GoodOL]

The buy-in is $10,200 and I basically won the expenses. I'm not looking for the better end of the deal...I'm really just trying to figure out what is fair. Thanks for your input!

[GoodOL]

Taxes are a separate issue. I believe Form 5754 will cover any tax issues. This form will allow the payer of the winnings to prepare form W-2G for everyone receiving winnings.