If one were to hire a 'Team Manager' in the start of a very small team path, what should one expect from a manager if the players are the sole investors and expected to pay 6-10% of net wins and an initial fee of $400-$750?
This is all new to me and I feel as if it is a good thread for newbs, or someone new to a team approach where a management fee is applicable.
There is no glory in practice, but without practice there is no glory . -Unknown
Depends on how active in actually managing the team the manager is. Is he just an accountant? Then 1% to 2% of the win might be an appropriate amount. Is he an actual manager sending players on assigned playing (i.e., a team controller) then 5% to 10% might be appropriate. It's all a negotiation with investors at that point because the team management fee usually comes out of the investor dividends, not from the players share.
Regardless of whether you charge a management fee it's a good idea to withhold 2% to 5% of each bank's winnings as a contingency slush fund. The team can use it as added liquidity but it sits there for the purpose of covering unexpected expenses (like if a player gets arrested or backroomed to pay legal fees). It can also be used when the team inevitably splits up to help cover the loss on the final bank. Whatever is in the contingency fund would simply be added to the result of the final bank and be chopped up between the remaining players and investors. Over a period of time for a long term team this slush fund can amount to a significant amount of money so you could periodically declare profit distributions from this fund or use the fund as a bonus prize pool for that bank.
Last edited by bigplayer; 10-30-2015 at 12:27 PM.
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