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Please Clarify the Difference: Staking and Selling Action

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  1. Michael_B Michael_B is offline

    Las Vegas, NV
    United States

    Posts: 425
    Joined: May 07

    May 27th, 2008 (5/27/2008 3:44pm)

    K, world series is coming up, gonna be grinding the cash game 3 - 4 days a week and maybe one or two tourneys. Might get staked/might sell pieces of myself.

    Can someone help differentiate the two? I am fairly new/noob when it comes to these practices but I know lots of ppl do it.
    I kind of understand if you get staked, you have a make-up and the other you don't, but if you profit do you pay the same amount to your 'investor' ? A full buy-in "stake" usually gives 50 % back to the investor, but if I sell $500 of a $1500 tournament buyin-fee, how much percent is standard practice to give back to the person who bought a piece of the action?

    (side question: are there any plo8 CASH games at the series?? I was too busy working on the tournament side last year to check. thanks)
  2. downbylaw11 downbylaw11 is offline

    Surrey
    Canada

    Posts: 4,775
    Joined: Jun 07

    May 27th, 2008 (5/27/2008 3:53pm) in reply to Michael_B

    im under the impression that if you sell 30% of yourself, then you have to give that person 30% of any winnings. Someone correct me if I'm wrong. if you get staked for a single event at the world series, there will unlikely be any make up as it will be a one time deal. makeup will only happen if you are being staked as part of a long term agreement
  3. bef99hwk bef99hwk is offline

    Manhattan, KS
    United States

    Posts: 7,332
    Joined: Apr 07

    May 27th, 2008 (5/27/2008 3:55pm) in reply to Michael_B

    If someone gives you 10k in mtts and stuff to play with or whatever, I'd prolly add up at the end however much you won....lets say you put 10k in mtts and had 20k in winnings. Subtract how much they put you in for, and then they take 50% or whatever you'd get 5k. So ur profit is 10k after they take out what they put you in for, and take their cut. Selling pieces of ur action is a way to play, with others HELPING you buy in, but not doing the whole thing. For instance, you want to play 10k buy in. I'd put up 5k, you put up 5k. You win 20k. Since I put you in for 1/2, I'd take 1/2 of ur 10k profit since I put you up for that much. If i put you in for 3k of the 10k, i'd take rougly 3k and change. If you lose it, I don't think you have to pay me back, or maybe you do depending on what you and the guy agree on. But if my friends were "investing" in me, then it's like the stock market and you lose it. I don't know all this for sure but I think this is the way it works.
  4. BeL0WaB0Ve BeL0WaB0Ve is offline

    Forest Park, IL
    United States

    Posts: 3,306
    Joined: Sep 05

    May 27th, 2008 (5/27/2008 4:40pm) in reply to bef99hwk

    Usually a standard backing deal will be somewhere along the lines of 40/60, 50/50, 60/40 split with makeup given for the players losses.

    As for selling a percentage of your action, since there is no makeup involved then it is pretty standard to buy someone's action at a dollar for dollar rate so like if you sell 50% of your action in a 2k event for 1k then the buyer would be entitled to 50% of your winnings. There are some instances where a player can demand a better price on his action due to his reputation and or results, so maybe will sell like 50% of his action for like 60% of the buyin or something along those lines.

    BeL0W
    12
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