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Setting Up Payout Rules for Your Calcutta

A commissioner's guide to choosing the right payout structure — balanced, top heavy, or with props. Get it right and people come back next year.

Calcutta EdgeMarch 17, 20263 min read

The Most Important Decision You'll Make

As commissioner, the payout structure determines who gets paid, how much, and whether your group has fun or feels cheated. Get this right and people come back next year.

The Three Common Structures

Balanced (Recommended for Most Groups)

Spreads payouts across all rounds. A team that loses in the Sweet 16 still pays out. More participants get money back, which keeps people engaged longer and reduces the "my teams are all dead" feeling by Day 2.

Example split:

Top Heavy

Concentrates money in the later rounds. The Final Four and Championship get the lion's share. Higher variance — a few people win big, most walk away with nothing. Best for groups that want maximum sweat on the late-tournament games.

Example split:

With Props (5-15% Set Aside)

Takes a portion of the pot for side bets. Common props include Biggest Upset (highest seed differential in a win), Highest Seed in the Final Four, and Largest Margin of Victory. Props add another layer of excitement and give everyone a shot at winning something even if their teams flame out early.

What Works Best

For groups under 10 people, go balanced. Smaller groups mean fewer teams per person — you want early-round payouts so nobody's eliminated on Day 1.

For groups of 15+, you have room for top-heavy or props since each person holds more teams and has better coverage across the bracket.

First-time groups should always start balanced. You can get more aggressive next year once people understand the format.

The Math Behind It

Your payout structure directly affects team values. In a balanced structure, lower seeds are worth more because they're more likely to cash in early rounds (beating a 16-seed in the Round of 32 pays out). In a top-heavy structure, value concentrates in the top seeds because only they have realistic paths to the Final Four.

This means your bidding strategy should change based on the rules. If your group uses a balanced payout, mid-tier seeds (5-8) are often underpriced relative to their expected payout.

Setting This Up on Calcutta Edge

Payout rules are configured when you create your auction session. Choose a preset (Balanced, Top Heavy, or With Props) or customize the percentages yourself. The platform handles all the math — as games are played, it automatically calculates who is owed what based on your rules.

No spreadsheets. No arguments about who calculated wrong.

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