Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Michael Sammy, we need to review and agree on the numbers and provisions that I'm going to propose to Daniel later this afternoon. Sammy Cooll

image text in transcribedimage text in transcribedimage text in transcribed

Michael Sammy, we need to review and agree on the numbers and provisions that I'm going to propose to Daniel later this afternoon. Sammy Cooll I am so excitedl I checked the league standings this morning, and the Dusties are currently in second place in the league. My dad said that they are on fire so far this season, and if they can continue their current level of performance, they-no, I mean we could qualify for the playoffs by mid-September. Wouldn't that be incredible? Michael Yeah, kid, it would. But let's focus on today's contract negotiations. I want your input, so let's run down my list of thoughts, and then we can talk about your move and your transition to Springfield Sammy ok, what's on your list? Michael First, I'm proposing a three-year salary equal to 15% greater than the MLB's minimum player salary of $414,000. This should bring your annual salary to $476,100 per year for each of the next three years. My rationale is that if you do really well during the next three years, then we can renegotiate your contract sooner and go for the really big bucks in three-rather than in four or fiv Remember that you will be paid at the end of each month, and don't worry about the effect of taxes at this stage of the deal. We'll worry about your federal and state taxes once we meet with your financial planner So now, let's think about the other terms of your contract. I'm thinking that we propose an allowance of $7,500 to pay for your moving expenses, to be paid when the contract is signed, a signing bonus of $15,000, and a performance bonus. I've also lined up your first endorsement contract for you. Sammy Great! But two quick questions. First, when would the signing bonus be paid? Second, what type of performance bonus are you thinking about? Michael In the case of the signing bonus, I think, given your ability to manage money, we should ask that you receive one-third of the bonus at the beginning of each year of your contract. I think we capitalize on your fielding and batting performance last year and ask for a 15% bonus if you are designated as the league's Most Valuable Player (MVP). Oh, and don't forget, you're also eligible for a $10,000 time-in-league bonus if you remain on the roster for six months. This bonus is usually paid at the end of the first year of your contract

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions