Deal Making

Context: Term article: Deal Making

Overview

Deal Making is a common practice in poker tournaments, especially during the late stages when few players remain and the prize gaps are large. Players negotiate to pre-distribute the prize pool, thereby reducing variance and securing a certain payout. Deal making usually requires the consent of all remaining players and approval from the tournament organizer.

Common Forms

• Chip Chop: Distributes the prize pool according to each player's current chip count as a proportion of total chips. This is the fairest and most commonly used method.
• ICM Chop: Uses the Independent Chip Model (ICM) to calculate the expected value of each player's chips, thereby distributing the prize money. ICM accounts for the prize structure at different finishing positions, making it more precise than a simple chip-proportional chop.
• Custom Deal: Players negotiate a non-standard distribution, such as giving one player extra compensation to reach an agreement.

Pros and Cons of Deal Making

Pros

• Reduces Variance: Avoids going home empty-handed after losing all chips on a single hand.
• Locks in Value: Ensures a payout equivalent to the current chip value.
• Saves Time: Prevents extended heads-up or multi-way play.

Cons

• Loses Chance to Win: Forgoes the opportunity to compete for the title and higher payouts.
• Complex Negotiations: Different interests among players can make agreement difficult.
• ICM Calculation Inaccuracy: ICM assumes equal skill levels; actual skill differences affect chip value.

Notes

• Deal making is common primarily in live tournaments and is less frequently allowed online.
• Some events stipulate that deals can only be made at specific times, such as after reaching the final table.
• Players should understand basic ICM principles to make informed decisions during negotiations.