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Posted: February 26th, 2022
Sports In Finance
Deferred salaries was a discussion point in chapter 4 and we discussed some of the deferred salaries in class. Read the article “7 of the Craziest Deferred-Money Contracts in Sports History” which discusses some different instances including Bobby Bonilla who will be paid by the Mets until 2035 even though he retired after the 2001 season. Other examples included are Max Scherzer (WAS) and Chris Davis (BAL) who are being paid for 14 and 22 years respectively.
Your assignment is 2 find a similar contract not discussed in the articles above and find the length of the deal. What is the reported length and value of the deal (i.e. Scherzer 7 years $210 million) and what is the actual length and value of the deal (i.e. Scherzer 14 years $131 million). You can find one on the same site and review it considering the NPV.
After reporting the reported and actual costs and sharing in a chart if available as Scherzer and Davis show, write a minimum of 1 page explaining how this benefits the following 4 parties: Player, Owner, Team, and Agent.
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