Not really an idiot. It's tough to foresee those types of things. I'm sharing what I've heard from others, but for someone who hasn't heard something like that would think: "This guy (partner) is loaded, he's been successful, and his investment risk is far higher than mine -- so he definitely won't let this thing go belly up."
Unfortunately, though, the relative risk tends to favor the majority shareholder, and when that balance is too far in the partner's favor, that's when the shady, yet legal, **** happens.
The pizzerias that I work for have a similar buy-in system in place, but they're a slam-dunk deal with far more aligned interests. In addition to his impressive track-record, my boss is very ethical, too.
Wow, I'm actually doing $1,200's worth of FF leagues this year.
It's almost...it's almost sickening.