The last week or two

Posted: April 04, 2008 10:53 AM

We had a neighborhood Calcutta for the NCAA basketball tournament. I thought that it was set up almost perfectly. You bought teams at auction not knowing what the prize pool would be. The prize pay-out is set up like this:

3% of the prize pool if your team wins 2 games (sweet sixteen)

5% for three wins (elite eight)

8% for four wins (final four)

16% for five wins (final two)

25% to the winning team

When Wisconsin went for $455 early on (I bought 50% of them with the host, Justin), I knew that this wasn't a small time deal like it was advertised! For pro poker players the numbers are very small, but to the rest of the world they are respectable. We started by selling off all of the 13 seeds and 16 seeds for $30, and then we grouped together all of the 14 and 15 seeds and sold them for $40. Then they drew random teams, saving the 1 and 2 seeds for the end. The prices for one bracket were: 8-Indiana $140, 9-Arkansas $35 (Phil), 5-Notre Dame ($225), 12-George Mason ($35), 4-Washington State ($370), 6-Oklahoma ($85), 11-St Joes ($85), 3-Louisiville ($575), 7-Butler ($150), 10-S. Alabama ($75), 2-Tennessee ($755).

I bought Arkansas ($35), Vanderbilt ($300), 50% of Wisconsin ($455 or $278 for my half), Davidson ($120), Temple ($70), and Xavier ($450) before we bid on the 1 and 2 seeds. By then we had had a few more drinks, and there was a group on the couch "Modeling" the draft. Every time they bid, I knew that there was value and forced the bid higher! By then we estimated the prize pool to be $16,000, meaning that two wins would net $480, and four wins would earn $1,280. I bought 50% of North Carolina for $1,550 (my half $775), and 50% of UCLA for $1,600 ($800 for the highest selling team). The couch guys scooped up Memphis for $925 (it helps to model and use the math!!). When the smoke cleared, 2 wins was $480, 3 wins ($801), 4 wins ($1,281), 5 wins ($2,404), and the winner (6 wins) gets $4,005.

I spent $2,828, and I had a great time rooting for Xavier, Stanford, Wisconsin, and Davidson. Of course, during the season I went to 5 or 6 Stanford games, and Wisconsin and Stanford were my sentimental favorites going in. Davidson was the most fun team to cheer for this year! Curry was awesome baby! When Wisconsin played Davidson, I had to root for the badgers with my heart and my mind, but my money was rooting for Davidson (I own 100% of them vs. 50% of the badgers). If Wisky had to lose, then at least it was to a beautiful team and story: Davidson…So now I need UCLA to play UNC in the finals, and then either way I win!