Before the 2018 National Football League season, the Jacksonville Jaguars signed quarterback Blake Bortles to a 3-year

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Before the 2018 National Football League season, the Jacksonville Jaguars signed quarterback Blake Bortles to a 3-year contract for a total of $56 million. Bortles performed poorly during the 2018 season, and in 2019, the Jaguars had to decide whether to replace him with another quarterback. Even if he was not on the team, the contract with Bortles required the Jaguars to pay him $16.5 million. A sports columnist argued, “The Jags now must admit their sunk cost is a lost investment and move on from Bortles.” Briefly explain the columnist’s reasoning.

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Macroeconomics

ISBN: 9780135801741

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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