OT: Auburn Fan's Wager

[OrangeOnions]

Not sure if this was posted already.

Mark Sciba made a $100 bet before the season on Auburn to win the NC at 500-1 odds. If Auburn won last night he would have made $50,000. He traveled to Vegas for the game but decided against hedging his bet.

Question: Would you hedge your bet?

I would most certainly hedge a portion. Say $20,000 worth so that my original bet was still the main course.

http://espn.go.com/college-football...an-made-100-bet-win-national-title-500-1-odds

 

[IthacaBarrel]

Not sure if this was posted already.

Mark Sciba made a $100 bet before the season on Auburn to win the NC at 500-1 odds. If Auburn won last night he would have made $50,000. He traveled to Vegas for the game but decided against hedging his bet.

Question: Would you hedge your bet?

I would most certainly hedge a portion. Say $20,000 worth so that my original bet was still the main course.

http://espn.go.com/college-football...an-made-100-bet-win-national-title-500-1-odds

Depends what 50K means to you? I certainly would have hedged it, crazy not to. At least 10-15K

 

[OrangeOnions]

Another interesting question would be how would you hedge it?

A money line bet on Florida St would be expensive. They obviously didn't cover the spread. In game teaser with the total ,either side, and Auburn , Auburn plus the points and the under all covered.

 

[Timonen]

Not sure if this was posted already.

Mark Sciba made a $100 bet before the season on Auburn to win the NC at 500-1 odds. If Auburn won last night he would have made $50,000. He traveled to Vegas for the game but decided against hedging his bet.

Question: Would you hedge your bet?

I would most certainly hedge a portion. Say $20,000 worth so that my original bet was still the main course.

http://espn.go.com/college-football...an-made-100-bet-win-national-title-500-1-odds

the part nobody brings up is how much he needs the money. if the family has a million in the bank, let it ride. if you have 30K in college debt and you're about to get married, you hedge. without knowing how much 50K means to someone (we all imagine how much it means to US), there's no way to really assess. i hedge the out of it.

 

[dasher]

I would hedge. Thought about it a lot because I considered betting syracuse at 40-1 in '03 in basketball

 

[Marsh01]

No brainer hedge

 

[Rocco]

You hedge, always. I don't really care how much money you have, it's not the point. You can guarantee yourself a profit by hedging. You are a meathead if you don't hedge at least a portion.

 

[upperdeck]

you have to take taxes into consideration as well.. you lose 30-40% or so you are down to say 30K. you need to make a bet that is going to win other wise you could lose both sides.. what kind of bet could you make to clear 20K other than a bet on FSU moneyline. if that loses you could apply that to taxes against the 50K how would that have played into winnings?

the line was at -330 what did it end up at?

so bet FSU for 30K to win 40K.. you clear 10K less taxes so 7K.
if auburn won you won 50K less the 30K so clear 20K but the taxes are on the 20K so 14K..

if you bet 40K you win 52K so you clear about 8k
if auburn won 50K less the 40K the taxes so 10K less taxes so you win 7K

if you bet 20K you win 26K so you clear about 4K
if auburn wins 50K less the 20K so taxex 30K so you clear 20K..

if you do nothing you win 50K less taxes so 30K

you could guarantee 7K or win 30K or win nothing..

 

[kirbivore]

I agree the move is to hedge, but he may not have had the 20K available to throw down on the FSU moneyline.

 

[IthacaBarrel]

I agree the move is to hedge, but he may not have had the 20K available to throw down on the FSU moneyline.

Exactly...

 

[upperdeck]

nothing like going to the bank to ask for a 20K loan to make a bet.

 

[kirbivore]

nothing like going to the bank to ask for a 20K loan to make a bet.

If not a bank I'm sure he could have found someone who would have fronted him the money

 

[IthacaBarrel]

I think the guy treated it like a sports bet, not an investment in his 401K.. Each his own

 

[Orangepace]

I agree the move is to hedge, but he may not have had the 20K available to throw down on the FSU moneyline.

The Vegas casinos would have floated him a marker for $20k on the bet.. Vegas is the easiest place to find a financier in this situation.

I would most definitely have hedged with a $20K bet FSU moneyline.

 

[BomberOrange]

I dont bet. what is a "hedge"?

 

[kirbivore]

I dont bet. what is a "hedge"?

Dude put a $100 bet down on Auburn to win the national title back in late January 2013 at 500-1. If they win the title he gets 50k. Once they made the title game he could have placed another bet on Florida St to win. FSU was favored so the money line -400. If he bet 20K on FSU -400, he wins 5K. If Auburn wins the game he wins the 50K, loses the 20K, and still nets out 30K before taxes. So instead of getting 50,000 or zero, he'll either get 5,000 if FSU wins or 30,000 if Auburn wins.