Quote:
Originally Posted by Gaudfather
You may be misinterpreting what I was proposing - under my option 4 Bennett signs for 5 years at $5MM per year, so would still make $5MM in Year 5.
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I believe the point being made was that if, based on your payment scheme, the first 2years are worth 2 mil each, year 3 is worth 3 mil year 4 is worth 4 mil, but he's getting front loaded 5mil AAV for 5 years, that essentially puts his 5th year value at 14 mil (25-2-2-3-4=14). Or if you were to say take option 3, 4x4 years=16 mill, the difference between that and option 4, 5x5=25 mil makes that last year worth 9 million.