tournament equity question

Question by txevans Posted
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6 Comments

Ok...need help to figure out what to do. Bottom line is that a poker buddy won a seat to Arizona state poker championship. It has a face value of 1100 bucks. He won it in a one table satellite. He now wants to sell it because he can't play in the event. His proposal to me is that I buy a percent ofthe face value....and keep that percentage of the winnings...like if I give him 550...I can keep 50%. Does ththis make sense or should I counter offer. I don't know how much he could sell it for...but why would anyone pay 1100 when you can just buy in for that? Suggestions please....thanks!

Comments

  1. Selling seats is common in poker tours like the Mid-States Poker Tour (MSPT). I won one and couldn't play, so I turned around and immediately sold my $1100 seat for $950. The $950-1000 range is a typical for those tickets. I've never heard of an arrangement like your friend is proposing, but I'm sure it happens. Since he can't play you should be able to negotiate a lower price or higher percentage. If you can get a friend's discount from him, offer $800-850 for the whole thing. Good luck!

  2. Ok...here is what we settled on. I am giving him 250 and getting 30% of the action. We will split tax liability 70/30 as well. He will pay day one expenses and I will pay any after that. Basically that's just gas down and back each day of the tourney as day one is Saturday and then day two would be monday. I think it's a pretty fair deal?

  3. @txevans i dont think thats a good idea...he cant play...hes forcing you to give him value on top of value...you are going to give him money for something he would otherwise have to get absolutely nothing for.. And on top of that if you win you have to pay him out again? Uhm...no.
    Pay him a price for the ticket...go on about your business. It shouldnt cost you money on top of money because your buddy has poor planning skills.

  4. @txevans i dont think thats a good idea...he cant play...hes forcing you to give him value on top of value...you are going to give him money for something he would otherwise have to get absolutely nothing for.. And on top of that if you win you have to pay him out again? Uhm...no.
    Pay him a price for the ticket...go on about your business. It shouldnt cost you money on top of money because your buddy has poor planning skills. At 30 percent its not worth it. You could take half thE 250 and play in two 100k guarantees and keep all the money yourself.

  5. He should easily be able to sell the buy in chips to anyone in line for near face value, so any deal is fine. Essentially he is "buying" 70% of your action for $850 so you are getting markup. Good deal on your part IMO.

  6. Thanks for the opinions. It was quite a ride...and in the end I felt like it was well worth the money for the experience.

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