Advise on Bankrolling Please

ace2ace

Hey all I am a new memebr here and I was wondering if any of you could help me out here,I recently bankrolled another player,A friend of mine.
It is my first time bankrolling someone and would just like some info on the general rules of it if anyone knows..
Im done a deal where as I get 50% of his winnings in the tournies he plays but if he wins(comes 1st) I give him 60% and I take the 40%.I think this is fair.
Reason Im asking is he is a friend and I want to do good by him and he has recently got his first big cash,enuf to see me get a nice sum off him,over half of the bankroll i orginally gave him...
How do you normally get a person out of a bankroll?
I mean lets say he wins again wots the general thing done if he wants to buy me out?
we didnt set a time limit or anything but I did say at the start that if he had a big win he could give 150% on my investment ans we could call it quits,but he doesnt want to buy me out yet he wants to give me my cut and keep playing but im unsure how to go forward from here,
Anyway any info any of yis might have on the general rules of bankrolling another player would be greatly appreciated...
We did set out general rules at the start that at the end of every month id take 50% of what he has over the orginal bankroll and he could but me out at a later stage if he wanted...
Sorry for the long post I just want to give as much info as possible....
Thanks for reading...

Lurker1977

Is there make-up? Is it cash/SNG/MTT? Has he a history of being a winning player? If so, over how long/sample size?

Tbh if it is an amount of money you are not going to be overly upset about should he busto, then whatever suits you both but if it is a significant amount of cash then I would be looking for more than 50% if there is no make-up, access to his poker account, copies of all his HH's sent directly from the pokersite, signed contract laying out all the t&c's.

As for buying out, if there is make-up then he would owe whatever he is in arrears. If you agree a time period, then when that time period finishes (include a financial penalty should he wish to close out early if you wish), otherwise to buy out then just when one of you calls a halt to the agreement and he sends back the bankroll provided by you. Honestly, I wouldnt recommend rolling a friend unless you cover all eventualities and above all get you both to sign a document which outlines these events and the action to be taken. This can offset any arguments where either or both of you had a different view on any one event occurring.

ace2ace

im sorry but whats a make- up?
Im pretty clueless to this and was just wondering if you could tell me wot a general agreement would be,I know that all agreements could be different but i just want a general idea.
I have not got a contract with this person and dont intend to i trust this person completly and dont think all that will be nessasary.
The bankroll is for mtt's mainly I didnt set out a time frame as such I just said we would work off a monthly basis,I did say that if later down the road he gets a big win he can buy me out for 150% on my investment,so if I gave him 2000 he could give me 3000 back and we could call it quits.
I think the 50/50 is fair because it gives him an incentive to do well and the 60/40 if he wins in his favour,also might push him on a little.
I have seen all his stats and the like pryor to giving the investment and hes a player I know has alot of potential and could make alot of money I think,I am in this for a profit but I also because hes a mate I want to make it as fair as possible and just want to give him a jump start and if I can make a little money in the process then why not,Hes coming over later to speak about giving me my cut so far and I want to discuss terms with him so I apreciate your questions and comments and any more advise you have..
Thanks for your response

Lurker1977

Make up would be where he covers his losses then spilt the remaining winnings, e.g. you give him $2k, he uses 500 in entries for MTT's without winning anything, then wins a tourney for $750. The first 500 of the winnings covers the losses made to that point then the last $250 is split 50/50(or 60/40, whatever your deal is).

Without trying to be smart, you have no intention of following even the most basic of staking agreements, and this is more of a friendship thing than an investment. Just use whatever will suit you both but from your posts I would be surprised if you really understand the massive variance in MTT's and possibly you see this as a cheap way to make money. It is most definately not and be prepared to write off the investment. I don't think anybody here will be able to provide you with any information that will help you. One thing you should agree on is the max buy-in for an individual tourney, i.e. he can't just buy in to a $2k SNG and hope for the big "spin-up". I would recommend no single tourney with a buy in greater than $20 and for rebuy tourneys $10 with 2 rebuys. These would just be my thoughts on it tho, possibly those with a better knowledge of MTT bankroll management might have a better idea of the bankroll requirements needed.

ace2ace

Im a Mtt player only myself and understand the varience very well,I have made my money playing mtt's only and had enough spare to fund this player,I won the money so I dont see it as a loss really,The reason im asking is he was having no success there for a while due to a dry run and no luck down at the business end and the bankroll dropped quite a bit, but after 6 weeks he's got his first big win and I get 50% of it after the make-up which actually amounts to well over half my investment,Im just not sure how to go forward from here,Is it standard for him to still haved to to buy me out?
Lets say he gets a big win in the coming few weeks and wants to buy me out at the rate of 150%,do you think this is a fair way to go?
I realise I made a big mistake not setting time frame,ie 3-6months would of done to start with at least,
You are right about me ignoring the basic staking agreements which was pretty foolish of me,It is my first time and I will not make this mistake again,I just wanted to know wots standard and fair?

Lurker1977

ace2ace wrote: »

Im just not sure how to go forward from here,Is it standard for him to still haved to to buy me out?
Lets say he gets a big win in the coming few weeks and wants to buy me out at the rate of 150%,do you think this is a fair way to go?

tbh no, its a mate so i would leave it at 50% of any winnings plus your stake back. If he has losses then I would just expect my stake back. As for buying you out, he shouldn't have to but if he wants to, or you want him to then so be it.

ace2ace

Lurker thanks very much I think ill do that just that then,50% of winnings and my stake back....that seems fair and is win win for both of us.
cheers for your help man.