SPMG 101 CUNY Lehman College Financial Perspective in Sports Paper

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SPMG 101

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*PLEASE KEEP IN MIND THIS IS A FINANCIAL PERSPECTIVE IN SPORTS CLASS*

I HAVE ADDED THE POWERPOINT YOU CAN REFERENCE AND YOU CAN ALSO USE OUTSIDE SOURCES


APA FORMAT

To Complete this Assignment, You Must:

  • Answer these questions:
  1. You are Russel Wilson’s agent, and Wilson’s contract is about to expire. Two teams have made offers. Both contracts are 5-year contracts that pay out a total of $80 million over the life of the contracts. One contract will pay the $80 million in equal installments over the five years. The other contract will pay the $80 million in installments, but the installments increase 5% per year. Which deal received the better deal?
  2. You have built a successful athletic brand over the years, and two companies have made you an offer to buy your company. The first company is offering $650,000 for your company, a one-time payment. The second company is offering you $810,000 and will pay you one year from now. You found a municipal bond for a new stadium with a rate of return of 6% for one year. Which deal do you accept?
  3. July 1st is known as Bobby Bonilla Day in sports. Explain how Bobby Bonilla ended up being paid a lot more money from the New York Mets than what other players receive.
  4. Why do professional sport teams need to calculate future value when signing players?
  5. Do you think professional athletes should be considered assets?

Documentation Style: American Psychological Association (APA). You must provide accurate references and accurate in-text citations for each direct quote or paraphrase that you include.

PLEASE MAKE SURE THE QUESTIONS HAVE A LENGTHY RESPONSE :) THANKS!!

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Explanation & Answer

Attached.

Running head: FINANCIAL PERSPECTIVE IN SPORTS

Financial Perspective in Sports
Author’s Name
Institutional Affiliation
Date

1

FINANCIAL PERSPECTIVE IN SPORTS

2

Financial Perspective in Sports
Q1.
The better deal is one that has equal installments. Given that the sum of both annuities
must be similar, the first payment of the second annuity would have to be relatively small to
cause the payments of the second annuity to grow at 5% per annum. The option of payments
done in installments is also better because the installments will be acting like investments
causing Rusell to earn more than if he could be given $80 million for the contract (Tyler, 2017).
Q2
I will select the first option of the company that offers $810000 after one year.
Considering the time value of money, $810, 000 is valuable in future as compared to the present
value of $650,000. When an option of $650,000 is selected and the municipal bonds purchased at
the rate of 6%, the accumulated amount at the end of the year will still be less than $810000. The
future value of money offered by the second company is greater than the ...


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