Competition Money

[BrewerDJ]

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) 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]

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]

Whatever you do. Have it figure out before your first contest.

[nthole]

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! ) 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]

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]

Originally Posted by Scottie

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]

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]

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]

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]

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]

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]

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]

My team is myself and my wife. So even if we win anything I sure dont see any money.

[moocow]

Everything we win goes into the team account and then is used on the next contest or saved up to pay entry fees.

[BrewerDJ]

Originally Posted by Fat Freddy

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.