Buying and Selling Shares

Wanted to touch on a couple things now that the Main event is right around the corner and the cash games at the WSOP are rip roaring and rocking.

This article concerns the fact of selling shares of ones self and buying shares of others.

In case people are new what you can do is this. Say you have won a seat to the Main even and its a 13K prize package ($10K for entry and 3K spending money) You take the 10K entry fee and break it down into shares. I personally never sell more than 50% of myself but you can sell what you like (Obviously not over 100%) to what you feel comfortable with. This way you are taking $5,000 (@ 50%) in money from your investors and any wins you have will be paid proportionate to the amount they invested.

Okay lets say you bust out. Okay, your investors lose their money but you have pocketed the $5k to reduce your exposure to the loss of the Main event. If you win prize money however, you will need to pay them their share of the prize you won. for example if 5 people paid each 1,000 for the 10% share of you and you won 1,000,000 dollars they are each entitled to 100,000 each. You will still pocket 500,000 for your 50% share.

As you can see it limits the downside loss to playing in big tournaments, and you can still benefit from the upside. In tournaments like the WSOP ME with like 8000 people expected, the odds are that you are NOT going to cash in a tourney like this. If you care to limit your exposure, sell off some of yourself to investors. But, one thing, Always put the agreements in writing. It makes the investors more comfortable and its a good idea anyway. You don’t want there to be hard feelings when all is said and done. Keep a log of the play at the blind levels and your corresponding chip stacks etc. and finally put what place you busted out in and the amount of prize money won (if any) take the time and type up a professional written report of how their investment went. It goes a long way toward keeping investors in the future.

If you have any questions, lay them out here and I’ll get back to them. Until then, good luck and see you at the tables.