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BrewerDJ
03-07-2012, 10:33 AM
We are starting this year into the competitions. I was wondering what you guys do with the prize money. I'm not really expecting to get any calls this year (I certainly hope:becky:) but in the case we do I should be ready and at least have a plan.

Does it get split up with the whole team? Do you just buy the team dinner & drinks? I mean since I'm the one who owns the equipment & lays out most if not all the cash for supplies, meat, gas & fees.

Just curious...for now.

Muzzlebrake
03-07-2012, 10:51 AM
you aren't going to get one answer it is going to vary greatly from team to team. I do think that most however deduct any contest expenses before any distributions are made.

Scottie
03-07-2012, 10:58 AM
Whatever you do. Have it figure out before your first contest.

nthole
03-07-2012, 11:08 AM
We deduct all costs first (entry fee, meat, rub, etc - we keep a chart of cost for each contest) and then if there is anything left (which has never happened! :grin:) the agreement is that we divide it evenly among the whole team. If you are funding the whole thing and doing most of the work I don't think it's out of line to say you keep the money. For us 2 of 3 fund the team, but we all work evenly at the contest.

The Virginian
03-07-2012, 11:17 AM
We set up the team as an LLC, and all the prize money goes into a team account. It is used to defray current and future team costs. Its important to keep track of everything because one needs to file taxes for the LLC.

Prior to forming the LLC, all team winnings were split among the team members, and reported on individual tax forms as hobby income.

HarleyGirl14226
03-07-2012, 11:18 AM
Whatever you do. Have it figure out before your first contest.

Exactly... and all involved know what the deal is ahead of time. You don't want to be standing there with a check (or hopefully checks) and have people start asking about when they are going to get their cut...

And if you plan on keeping that money for yourself, make sure any team members who may have laid $$$ out get reimbursed first.

DawgPhan
03-07-2012, 12:00 PM
I would be more concerned with how you are going to split expenses. Even winning $500-$600/contest is going to leave a couple hundred dollar hole for every contest. And unless you are getting the last couple of calls in a category it is tough to put together $500 in checks on a consistent basis. At a lot of contests 4 top 10 calls might not even put $500 in your pocket if you take 4 calls from 6-10. Even if a contest has $10k in prize money.

Wrench_H
03-07-2012, 12:02 PM
I usually take 3-4 friends with me. We divide all the expenses up front. We've only done 2 contests, and still have a lot of equipment we would like to buy and haven't won anything yet. Our agreement right now is that if we win anything, we will divide the money equally and those that want to do it more often have the option of putting it into a group account instead of keeping it to help cut down on future up front expenses.

dmprantz
03-07-2012, 12:16 PM
Last year, we started to used the winnings to evenly offset our expenses for that comp. As the winnings overcame the per-comp expenses, we paid off the expenses and then split the money evenly.

This year we setup a no-fee checking account from which all consumable purchases and fees get paid. We each deposit equal amounts of money on a schedule or to cover things. Any winnings will go back into that account to fund future competitions. Whenever we decide to part ways, we will liquidate the account and divide it evenly.

I naturally like to account for things and ensure that they are equal, so it's easy for me. Others might find it overkill. It'll also come in handy come tax season next year. It does require some trust since we all have withdrawal access to the account, but that account ledger provides legal evidence should some one forget morals....not that I ever plan on that happening with my team.

dmp

Parts_Guy
03-07-2012, 12:19 PM
Our team is just my father and I. He is the money man and I do a bit of the cooking. Last year was our 1st year and when we walked, he kept the money to help with costs. He offered me cash but I didn't want to take it unless a profit was made. I was able to get cash a couple times when we made money....but I am doing cause I love it, not to make a quick buck.

BBQ_Mayor
03-07-2012, 12:26 PM
The money stays with the team.
At least cover the entry fee of that contest first before you put it on other items such as meat and supplies. I think you'll find you might not have much left over. Hopefully you do but average you're just looking to cover that contest.

Slamdunkpro
03-07-2012, 12:38 PM
You could use the "crab fishing model". All expenses come out of the team account and all winnings and sponsorship monies go back in. At the end of the season if there is anything left, a certain amount will be held for the next year and the rest will be disbursed based on the number of "shares" each team mate has.

Fat Freddy
03-07-2012, 12:59 PM
My team is myself and my wife. So even if we win anything I sure dont see any money.

moocow
03-07-2012, 01:45 PM
Everything we win goes into the team account and then is used on the next contest or saved up to pay entry fees.

BrewerDJ
03-07-2012, 01:46 PM
My team is myself and my wife. So even if we win anything I sure dont see any money.

Ah Mawage. What's yours is hers and what's hers is hers.:redface:

Iamarealbigdog
03-07-2012, 02:49 PM
Good topic and a tough one.

I had a partner but not a full partner, I paid for all the equipment, and the variable cost, the fuel and the spices for the rubs. I did all the practice and there was a lot of cost thrown down the drain to get the recipes and techniques to where we could start winning. In one season the funds started exceeded the individual cost of the event, we allowed for some travel expenses but not everything. The funds went for fuel costs for the cookers as well as some other costs that need to be addressed.

This causes some friction but when I laid out the total teams cost the issues was quashed. However now our winnings and sponsorships are starting to reduce our equipment cost which I retain and that is creating another issue of who owns the equipment.

We are now considering a LLC were investment in gets investment out with the team owning the equipment. (now we have to address personal use of the team equipment) we will work it all out somehow, however as mentioned above the smart thing to do is to have your agreements upfront so nobody misunderstands.

Sometimes it like playing in the park and the one kid takes his ball home, which I really don't care cause it's my ball.

Now address who gets the trophy, that’s even tougher

Bourbon Barrel BBQ
03-07-2012, 03:26 PM
I own all the equipment so that's not an issue. All comp fees and expendables are split evenly between the two of us and all winnings are split evenly between the two of us. This keeps it simple. I own the LLC and all the gear so the trophies stay with the LLC. Teammates have to be willing to shoulder some of the financial risk if they want a share of the rewards. The first 4 contest we ever did came completely out of my pocket and I kept all the prize money. At the end of the year I took the 3 guys that had helped out for a steak dinner. The next year I offered up shares of the team and one guy took me up on the offer the others were content to help occasionally and drink a few beers and eat some left overs. It's worked out pretty well.

Podge
03-07-2012, 03:45 PM
I pay for everything. I keep all the money. My wife (the one and only extra team member) I reckon gets to share in the money indirectly. If we have a good year, it usually helps pay for a vacation or something.

Lakeside Smoker
03-07-2012, 03:47 PM
Feed the beast.

Lion Bout The Q
03-07-2012, 04:25 PM
when we won a contest, all the winnings went to pay for the American Royal!

Stoke&Smoke
03-07-2012, 04:35 PM
What is this competition money you speak of?:rolleyes:

When we do get a call, it just offsets our expenses. I don't know too many folks making a profit on it, although I'll admit there are a few.

manbearpig
03-07-2012, 04:54 PM
Great subject. If your a new team just starting out be sure to note on the application form to make the grand champion check out to your name. They will make it out to your team name unless you specify otherwise.

Q-Dat
03-07-2012, 05:14 PM
We haven't won much, but what we have has been put toward future entry fees.

djqualls
03-07-2012, 05:43 PM
Does anyone bring someone to help out and just pay them a stipend for the work at the comp win or lose? I've had offers to come and be on the team but......

scm1226
03-07-2012, 06:01 PM
There is money to be won at these contests??? Damn I need to try harder next time!!
We put it to the next contest!!(only happened once so far)

The Cosmic Pig
03-07-2012, 06:07 PM
Does anyone bring someone to help out and just pay them a stipend for the work at the comp win or lose? I've had offers to come and be on the team but......

I have a friend who helps out, but I pay all the expenses and own all the equipment; he brings containers and takes home a LOT of the leftovers. Paid in full!

JD McGee
03-07-2012, 07:10 PM
If we are lucky enough to win a few bucks we use the prize money to pay for the comp expenses first...any leftovers goes in to the "future comp fund kitty"...:cool:

Butcher BBQ
03-07-2012, 07:25 PM
As I have said many times and I hope my lovely wife won't read this thread. Because I continually tell her it is for ribbons only. :wink:

SirPorkaLot
03-07-2012, 07:26 PM
I am watching this thread closely, I just have not been able to figure out what to do with all my excess winnings.

Sarcastic :mod:

Put whatever I get back into the team.

Shirts, smokers, higher quality meat, banners, knives, beer.

If I get to the point that I'm making more than I'm spending in comp. BBQ. I'll hop on my unicorn and ride into the sunset.

jbrink01
03-07-2012, 07:31 PM
I pay for everything and I keep the money. We have another couple that completes our team and asks for nothing. They work hard, we enjoy each others' company and we try hard to recognize that. At the end of last year I surprised them and bought them a smoker.

manbearpig
03-07-2012, 07:41 PM
I pay for everything and I keep the money. We have another couple that completes our team and asks for nothing. They work hard, we enjoy each others' company and we try hard to recognize that. At the end of last year I surprised them and bought them a smoker.
That's why your a winner Jeff.

lazyjacres
03-07-2012, 07:44 PM
I pay for everything and I keep the money. We have another couple that completes our team and asks for nothing. They work hard, we enjoy each others' company and we try hard to recognize that. At the end of last year I surprised them and bought them a smoker.

Hey, can I come hang out, pit bitch or something for you? :wink:

TooSaucedToPork
03-07-2012, 07:53 PM
What we do:

We all split the cost of competitions equally among all the members of the team.

Each catagory is cooked by 1 or 2 team members. The team members that cook each catagory split 50% of the prize money up to $250. The other 50% goes into the team fund.

GC's and RGC money goes into the team fund.

jbrink01
03-07-2012, 07:54 PM
Anytime Jamey! However discretionary funds may be a bit thinner this year with the purchase of my new trailer....:rolleyes: (Don't tell my team mates!)

Contracted Cookers
03-07-2012, 07:54 PM
Hey, can I come hang out, pit bitch or something for you? :wink:
Don't do it . he's bossy

jbrink01
03-07-2012, 08:08 PM
:drama:Don't do it . he's bossy

All great artists are a bit tempramental........:drama:

Balls Casten
03-08-2012, 07:46 AM
We dont keep good records/receipts on anything. So we split any money won between anyone that shared in the entry fee. Then the rest of the expenses are shared as they are spent.

ROF, Texas
03-08-2012, 03:35 PM
Like some of the others have said, our comp team is set up as a LLC., with 2 primary owners. Winnings are deposited into the bank account and expenses are paid from the account if possible. We also cater some and this helps feed the beast. We will probably compete in +/- 10 competetions per year with one being a large PR event for the team. We know historically this event will cost $5,000.00 and we try to have some reserve prior to this cook off.
At the end of the day it is a hobby and do what makes you happy!

Wampus
03-08-2012, 05:52 PM
Jimmy and I just discussed this today.
The team's set up as an LLC. We're gonna get a business checking account with 2 debit cards. He'll set up and pay or a lot of entry fees with checks and I'll be picking up a lot of the meats since I'm closer to the supply. Winnings (and we plan on a lot of those :roll::becky:) will just be put back into the account. At the end of the year, we'll split the profit or invest in more gear (trailer/etc) as decided.

We also plan on catering a bit and are already set up to vend at a couple of comps to help feed the monster.

Seems to make sense.

afreemaniii
03-09-2012, 07:44 AM
Our team is just me and my brother. We track who buys what going into the contest and split it up 50/50. Any winnings are then handled the same way, 50/50.

Brew-B-Q
03-09-2012, 09:40 AM
My team is me and bro-in-law. I pay for everything and keep all that we win. We split beer and other costs.

KC_Bobby
03-09-2012, 06:47 PM
As I have said many times and I hope my lovely wife won't read this thread. Because I continually tell her it is for ribbons only. :wink:

Wait ... Don told me the same thing. :doh:

Dr_KY
03-09-2012, 07:02 PM
Money? What money?

First year out there were cash prizes but after that for the most part competitions started giving out trophy's.