World Series Of Poker: Phil Hellmuth Under Fire For Unusually High Markup Fee In Turbo EventHellmuth Sold 30 Percent Of $10,000 Buy-In At 1.8 Markup |
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In the world of tournament poker, it is not uncommon for players to seek investors for their tournament buy-ins. Some of the game’s elite sell pieces of their action, or swap it with a similarly skilled player, in order to reduce variance. It doesn’t necessarily mean they can’t afford the entry fee, but reducing your exposure in a higher buy-in event can be a wise decision.
That’s what Phil Hellmuth apparently has done for a $10,000 buy-in turbo event scheduled to start Wednesday at the World Series of Poker, but the amount of markup he charged raised some eyebrows. Hellmuth, winner of 14 WSOP bracelets, charged his investors 80 percent markup, which means that Hellmuth received $1.80 for every $1 invested. Hellmuth sought $3,000 from investors (30 percent of the buy-in), which means that he took in $5,400 for the stake.
Hellmuth used a crowdfunding staking site to reach people outside of the poker community.
It’s a high price, but definitely not unheard of in poker. Some have estimated that the game’s best could charge 200 percent markup for the WSOP main event, arguably the softest tournament of the year in terms of average skill level of the field. Markup depends on the event.
However, to make matters worse for the “Poker Brat,” he has a reputation for showing up late to tournaments. He did so recently in a $300,000 buy-in. The fact that the event is a turbo caused some of his peers to cry foul. Because the speed of the tournament moves so quickly, showing up late to get some extra sleep makes far less sense than it does it other tournaments.
Some of his critics said Helluth was dishonest, but there were plenty of people who came to his defense. Supporters said he should charge whatever he can get.
Here’s a snapshot of the extended Twitter debate.
When @phil_hellmuth charges 1.8 markup for a 10k TURBO KNOCKOUT, there should be an SEC investigation because he is literally defrauding people out of their money. You should be embarrassed to hustle people out of their $20 investments. Absolutely pathetic
— Scott Seiver (@scott_seiver) May 28, 2018
Love the self-righteous haters coming out of the woodwork to attack
phil_hellmuth</a> for selling on <a href="https://twitter.com/StakeKings?ref_src=twsrc%5Etfw">StakeKings at a price that SOLD OUT. IMO he should have sold at higher markup. Build a brand and charge what the market demand will support. American dream realized.— Grant Hinkle (@GrantHinkle) May 29, 2018
Ryan – as often is the case, i disagree w the math. I believe that for $1 invested in me at @WSOP in Hold’em tourneys, I’ve cashed for over $3. I realize that I’m the outlier on the R.O.I. chart, but it’s a fact #PHOutlier https://t.co/4oBzqBNCzO
— phil_hellmuth (@phil_hellmuth) May 29, 2018
I’m sure I have cashed for $2 for every $1 in @WSOP NLH tourneys! Obs not robbing anyone…Blocking and Muting you https://t.co/DOSgyErjEZ
— phil_hellmuth (@phil_hellmuth) May 29, 2018
Totally open to the idea that I'm way off base here. I'm considering this as a big picture concept and when one of the most well known players in the world openly fleeces onlookers it creates a dangerous precedent and potentially destructive stigma
— matt berkey (@berkey11) May 29, 2018
I have mixed feelings on this. Phil is going to play anyway and if he only wants to give out sweats at a premium or not at all its his prerogative.
— Joseph Cheong (@subiime) May 29, 2018
I, by no means, believe tha haters are right. But they deserve the full platform that I have on most issues. I will continue to retweet the ugliest, most untruthful, and worst tweets that people send me. I will also RT fair criticisms of me https://t.co/khIR0s0Tqd
— phil_hellmuth (@phil_hellmuth) May 29, 2018
Phil- those of us who understand math know that this response is self righteous rhetoric used to pacify the naysayers and justify the ignorant buyers. If you truly gave a shit about the game/community you'd stop gauging them at every turn for your personal gain https://t.co/g1wUqP7nOS
— matt berkey (@berkey11) May 29, 2018
Matt – I posted two $10k tournies lifetime on @YouStake and cashed for over $50,000 both times. I have best R. O. I. In history (see USA Today article a few years back). I believe my mark up is warranted. You have issue w that. But you use the word “Cannibalistic,” really? https://t.co/obs1eR6Xaf
— phil_hellmuth (@phil_hellmuth) May 29, 2018
Bashing Phil for selling whatever mark up he wants is pathetic. He doesn't have to sell anything, and no one has to buy anything. People are free to do their own research and figure out the EV of the deal. This is like bashing every casino for having slot machines.
— Brian Eason (@bloodyfaceHS) May 28, 2018
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