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Originally Posted by GioforPM
I think his agent will want the 8 year sure thing for selfish reasons. He could easily be fired or retire before JG has another contract (as well as all the other risks).
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Perhaps, but if Johnny is smart he'll listen to lots of perspectives. A smart agent isn't going to persuade his client down a path that runs counter to the client's heart...that's how you end up getting fired.
Quote:
Originally Posted by Mr.Coffee
Yes I understand your point but I think it's highly unlikely he's holding out on year 8 hoping he can secure a future $2MM (or whatever) in difference. It's most likely he will be advised to take the most money he can right now and "who knows what happens in the future" and I would agree with that advice.
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Of course not. This is just one of dozens (if not hundreds) of factors to consider.
His gut, head, and heart are each thinking slightly different things right now. He's probably leaning slightly one way or the other, but with these kinds of decisions it can be hard to even know what you think you want. He's probably running various scenarios of pros/cons through his head all the time right now, and this is just one of the variables that has weights on each side of the scales.
Another would be time value of money. A higher AAV 7 year deal gives him more money to invest sooner. That could easily work out to $500k-1M over 7 years. Just another consideration that might mitigate any delta between 7 and 8 years.