Quote:
Originally Posted by Bingo
Depends on how he sees his value in 5.95 years I guess.
If you do a NPV at 6.5% on a 5 year 9.5M contract it's worth $39.5M.
If you do a NPV at 6.5% on a 8 year 8.0M contract it's worth $48.7M.
If he thinks he can play those additional three years he needs a 3 year $4.8M contract at that point in a big cap world to break the whole thing even in today's dollars.
If he thinks he'll only play two years he needs a 2 year $6.95M contract.
All depends on where he sees himself in 5.95 years. If he's still decently productive and good in his own end he might be smart to take the almost $60M in the first 5 years.
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I’d argue you would use a much higher risk adjusted rate on a potential second contract if you are Lindholm. Suddenly the guaranteed money becomes way more valuable in comparison.