Arch,
Don't post or visit here often but this one caught my eye. The structuring of the contract can be done several ways. It really comes down to the needs of the player.
On one occasion we had a player, will not mention any names, who turned pro in the early 80's. The player received $100,000 seed money. Due to his needs, no payback was made until he could buy himself totally out. This did not happen, for example, when he made his first 100k. It took several years on tour before he was able to be clear of his debt. In the interim, there became an earning point where there was a cut taken out of the players earnings. At the end of the day, there were a few bucks made off of earnings and a small interest off the investment. The risk in this case was still quite high though the player had earned his card already.
On another occasion, a player was handled quite differently. Player had not earned his card. We sponsored him on a weekly basis that he played in a tournament. This began at a very early stage of him trying to make it. He began, like it sounds like your example is beginning, on small tournamnets, trying to qualify in Golden Bear Tour, and Caddillac Tour, just to name a few. When it came to Q-School, yep, the big check was written. This particular player began at stage one. So with expenses it did become a pretty good size check. Onward, Those weeks he played he received entry fee, and all expenses for that week. The cuts were handled quite differently. At the end of the day, this proposition was a loser with what was invested but, it was way to much fun.
There are a couple of other scenarios but I will not bore you with them. The main thing is that few, even with a tour card in hand, have sponsorship from club or shirt companies, etc. Example is the first one I mentioned. Yes he got free clubs when he signed with the mfg., and yes he got some free shirts when he signed his shirt deal but, as far as dollars in pocket, can you say McDonalds? LOL!
It truly comes down to the parties communicating. The investor needs to realize that he might as well take the money and roll the dice in Vegas. Investor should go into the deal with expectations of getting zero back. But, it can be a whole bunch of fun traveling to certain tournaments, eating with the players, hanging out, etc. Communication between the 2 parties and then write it up according to what they land on. There is no 1 way or 1 contract that covers all of the scenarios.
Hope this helps a little.
golfingrandy
Thus, my comments of the perks and fun the investor can have.