An NFL player just signed a new 3 year contract with the Indianapolis Colts. Und
ID: 2413466 • Letter: A
Question
An NFL player just signed a new 3 year contract with the Indianapolis Colts. Under the contract, his base salary will be $5 million in the first year, $7 million in the second year and $9 million in the third year. In addition, his contract calls for a $4 million signing bonus up front. His contract provides LTBEs that could amount to $500,000 each year. Anticipate the NFL player being with the Colts for the entire contract.
How much of the salary will count against the team’s salary cap each season? 1st year:__________ 2nd year:_____________ 3rd year:______________
How much will the player be paid each year? 1st:___________ 2nd:___________ 3rd:____________
How much is the entire contract worth to the player? _______________
Explanation / Answer
player be paid each year?
Salary + Benefits
Total Worth of player
Time value of money is need to be considered for assesing contracts value. Or the contract will be worth :$31,000,000..ie,$31M
salary will count against the team’s salary cap each season
Teams salary Cap per year is not given so only can estimate how much will effect against cap per year. Consider only salary not any benefits.
Contract fee salary benefits Total $'000 Year1 4,000,000 5,000,000 500,000 14,000 Year2 7,000,000 500,000 7,500 Year3 9,000,000 500,000 9,500 total 21,000,000 31,000Related Questions
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