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Info behind backing

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  1. jdbunchOSU jdbunchOSU is offline

    Weatherford, OK
    United States

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    Aug 23rd, 2009 (8/23/2009 10:09pm)

    I'm considering backing a really close friend of mine. He's a winning player in the long run but he has to use his money for personal reasons which knocks his BR back down. I'm considering giving him a very good deal because i've known him for so long. I'm just needing some advice as to set up a good backing deal.
  2. anticure anticure is offline

    Oshkosh, WI
    United States

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    Aug 23rd, 2009 (8/23/2009 11:10pm) in reply to jdbunchOSU

    50/50 plus makeup...dont back close friends
     
  3. jdbunchOSU jdbunchOSU is offline

    Weatherford, OK
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    Aug 23rd, 2009 (8/23/2009 11:17pm) in reply to anticure

    lol yeah i know that, but his personal reasons are why i'm doing it.
    Thread Starter
  4. anticure anticure is offline

    Oshkosh, WI
    United States

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    Aug 23rd, 2009 (8/23/2009 11:19pm) in reply to jdbunchOSU

     
    Originally Posted by jdbunchOSU View Post

    lol yeah i know that, but his personal reasons are why i'm doing it.

    which is the exact reason why you should not venture into it
     
  5. Donnie2005.2 Donnie2005.2 is offline

    Lincoln, NE
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    Aug 24th, 2009 (8/24/2009 12:32am) in reply to anticure

     
    Originally Posted by anticure View Post

    which is the exact reason why you should not venture into it

     
  6. Wein Wein is offline Sunday Millionaire

    Posts: 9,210
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    Aug 24th, 2009 (8/24/2009 12:58am) in reply to jdbunchOSU

    search "backing" in the search before making such threads?
     
  7. MYBLUEDOG MYBLUEDOG is offline

    Greenville, MS
    United States

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    Aug 24th, 2009 (8/24/2009 4:12am) in reply to jdbunchOSU

    A. Remember backing is a business arrangement (when the player starts to run bad, your friendship may go out the window if you find it becomes necessary to terminate backing). You probably need a good "exit strategy" discussion. This may be a very difficult discussion among friends.

    B. If you terminate the backing and make-up/cake is due; that's money you write off. It's not considered a loan (unless you draw up a loan agreement). Then it's not a backing arrangement.

    C. You will probably want the arrangement to be discussed in detail and committed to written form since its a friend. You want to protect your friendship.

    D. Has your friend had trouble paying his bills and financial obligations in the past? If yes, this is a very high risk endeavor.

    E. You need to keep very good records. When you take out some profits and when the player takes out some (how much each receives). Tract the bankroll very closely.
  8. Frictionless Frictionless is offline

    Roseville, CA
    United States

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    Aug 24th, 2009 (8/24/2009 4:26am) in reply to MYBLUEDOG

    Ask Mattg what you should do, I'm willing to bet he has some very useful information regarding who/how/when to back a person.
  9. Livew1re Livew1re is offline

    United Kingdom

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    Aug 24th, 2009 (8/24/2009 6:01am) in reply to Frictionless

    dont think its advisable to back close friends/family etc, could get ugly.
  10. Puggy82 Puggy82 is offline

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    Aug 24th, 2009 (8/24/2009 7:10am) in reply to anticure

    I back five of my closest friends and it doesn't have to get ugly, you just have to manage it well.

    Having said that, don't think you have to give him a special deal just because he's your friend. Make it 50/50 with makeup, and as someone said make sure you have an exit strategy and that you both understand all implications of the deal. Ie how you will both feel if he wins a ton, or if he loses a ton.
     1
  11. Imustcall Imustcall is offline

    Jacksonville, FL
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    Aug 24th, 2009 (8/24/2009 8:34am) in reply to Puggy82

    The problem with being friends in any business deal is that the arrangements are usually made very casually and sympathetically. Keep the relationship formal (in writing) and hold him to the agreement. I might suggest evaluation points that allow you to walk away at any time, say every 30 days. You should not be doing this because he really needs the help, but rather to make money. If this is not the case, you will be better off to make him a loan.
  12. ronkend ronkend is offline

    Bosnia and Herzegovina

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    Aug 24th, 2009 (8/24/2009 8:51am) in reply to Imustcall

    this is a terrible idea
  13. Beaver Fever Beaver Fever is offline

    Dallas, TX
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    Aug 24th, 2009 (8/24/2009 12:46pm) in reply to jdbunchOSU

    No no no no no.
     
  14. astill2 astill2 is offline

    Atlanta, GA
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    Aug 24th, 2009 (8/24/2009 2:46pm) in reply to anticure

     
    Originally Posted by anticure View Post


    50/50 plus makeup...dont back close friends

    ?
  15. bef99hwk bef99hwk is offline

    Manhattan, KS
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    Aug 24th, 2009 (8/24/2009 3:20pm) in reply to astill2

    Don't do it...instead loan him a small amount that you don't really need and let him play off of that. I've done both and it's harder to back close friends and watch them run up 1000s in makeup...but I've also loaned friends 500 bucks and let them start playing small stakes cash and stuff with. The 2nd one is MUCH better. For one, it gives them something to start off of instead of feeling like 50 bucks isn't much to play with, so it makes them more confident in playing...also, it minimizes your risk because they can eventually pay you off, and it's a small amt. If they lose it, then oh well. But don't back your friend long term...it really sucks for both of you.
  16. Haze33 Haze33 is offline

    Sacramento, CA
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    Aug 24th, 2009 (8/24/2009 3:59pm) in reply to jdbunchOSU

    Your the only one that can answer this question, you can get advice here on dynamics of backing, but only you know his character and ability as a player, becareful, friends/money usually=no more friend.
  17. rcrane082985 rcrane082985 is offline

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    Aug 24th, 2009 (8/24/2009 4:13pm) in reply to Haze33

    just because someone is profittable on their own, doesnt mean that they are when backed. There are a lot of differences, one example, when someone is on a bad run on their own money, or close to broke, they are likely to (if they are smart), move down in stakes, make changes to their game, work harder, but when they are on backed money, they have no incentive to move down in stakes, and are more likely to autopilot. Just something to keep in mind. Your friend should have really good work habits before backing them.
    855 
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