Markup
Markup is a premium that a player charges investors when he sells shares of his tournament entry. A markup of 1.2 means that a share costs 20 percent more than its face value.
The simple explanation
A player who sells 10 percent of a $10,000 buy-in at a markup of 1.2 charges $1,200 for it. The extra $200 is the player's profit, whatever the result. The investor wins only if the tournament results are good enough to overcome the markup.
A closer look
Markups are used by stronger players, since they claim to have an edge over the field and ask investors to pay for it. The size depends on the player's reputation and the field. For investors, a markup is acceptable only if the player's expected return is higher than the premium. When the deal also includes makeup, the arrangement is more complicated. Both sides should keep clear records.
A practical example
A player sells 10 percent of a $10,000 entry at a markup of 1.2. An investor pays $1,200 for that 10 percent share.
Full explanation
Markup is a premium that a player charges investors when he sells shares of his tournament entry. A markup of 1.2 means that a share costs 20 percent more than its face value.
Markup is the extra amount a player charges for a share of his tournament action.
A markup of 1.2 means 20 percent above the buy-in.
It is used when selling shares to backers.
The investor must expect enough profit to cover it.
Alternative spelling: mark-up, mark up