I was offered long-term cash game staking, live 5-10 game, I'm familiar with the backer, it's also worth mentioning he runs the game.
The backer put the idea forth with a few types of deals we can do, told me to sleep on it and then come back and decide on how we proceed.
Basically, he offered 2 main options:
- Backer puts up the bankroll. 70/30 split in his favour. We split profits and reset balance once a week.
- Backer buys 50% of action. We split profits and reset balance once a week.
It seems to me at first glance first offer has more EV , as it gives me the opportunity to build a bankroll without risking investment. Also , it seems to me the extra 20% deal 2 offers can easily be offset by variance, which I'm protected against in deal 1.
As a person with no experience in these, I would really appreciate your thoughts on the deals, whether they are indeed standard or not and if/how I should/can negotiate them.