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Negotiating a Star Player's Pay

Assume that you are the manager of a professional soccer team and that you are negotiating a contract with your team's star player. You can afford to pay the player only 1.5 million a year over three years (the remaining life of his contract). The player's agent insists that the player will not accept a contract with a nominal value less that 5 million. Can you meet the agent's demand without relaxing you financial constraint on how much you can afford to pay him?

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Yes you can meet his demand, simply invest the 1.5M per year and earn interest. You could also pay him after 2 years if you wanted, however it is in your best interest to pay him ...

Solution Summary

134 words and a Word document to explain how investing your funds available will grow them to be able to cover a player's salary demands.

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