How does ''selling your action'' actually work?

Hey we hear more and more about poker players selling their ''actions'' same as ''shares'' etc but I wonder how that work actually... Like Duhamel some says he sold almost 45% of his actions but does it mean he sold 45% of his 8.9 Millions? Just wondering if someone could clarify how that work.


4 Responses

Sort Responses by [ Oldest First - Newest First - Most Popular ]

Got something to say? Click here to Add a Response!

PF_pitboss
PF_pitboss Platinum 3
4039d ago

Yes, typically when they sell action, they are selling it straight up, so if someone invested $1k (gave it to Duhamel) towards his $10k buy in, they would be entitled to 10% of any results he has.

PF_Mark
PF_Mark Bronze 3
4038d ago

Yeah. Lots of players won't want to pay the full buy-in to an event cause $10,000 is a lot of them. So they will sell some of their action...similar to staking. Say someone wants to play teh main event but he doesn't want to invest the full $10,000 himself. He will look for backers and sell them action. So say he only wants to pay $5k of the buy-in he will look for $5k from backers and based on how much they back him they will get that portions in winnings based on the % of the buy-in.

 

So a perosn who backed him say $2,000 would get $2,000/$10,000= 20% of whatever he wins.

ICalledWithJunk

It seems fair to me... its basically a win/win situation. Im pretty sure there is some ''good investment'' to be made if you think someone can really do well.

boleSt
boleSt Silver 2
4026d ago

Yea it is similiar to staking...the player share risk with "investor" and therefore share profit :)

ICalledWithJunk