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A city with a large and growing Hispanic population hosts a soccer team which they have provided for a yearly payment of $$2\mathrm{.}6m$ for the rent of the leased facility. They do not have a clause in the contract forbidding the team to sell venue rights to create additional revenues.

Telemundo, a large Hispanic media firm, has approached the team owners with an offer to purchase naming rights to the stadium. Telemundo currently has a $21\%$ market penetration rate in the city which generates $$7\frac{m}{?}$ year in revenues. It has been estimated that Telemundo can increase its revenues by an additional $6\frac{\%}{?}$ year if the stadium is named Telemundo Soccer Center. Based on this information, Telemundo has offered the stadium $$3\mathrm{.}6m$ for a $10-$year naming contract. Assume that the appropriate discount rate for Telemundo's transaction is $12\mathrm{.}5\%$ based on the opportunity cost of their invested funds.

A$)$ What are the risks to Telemundo from this business deal?

B$)$ The team is also entertaining a competing offer from a local RSN$.$ If Telemundo is aware of these negotiations between the team and the RSN$,$ should they delay or expedite their own negotiations with the team?

C$)$ The team has also offered Telemundo naming rights on the backs of the players' uniforms for $$2\mathrm{.}1m$ for a $10-$year deal. Thid sponsorship will allow for $3\mathrm{.}2\%$ growth in Telemundo's local market each year because of the uniform sponsorship. Write a $2-$page memo to Telemundo with a recommendation to consider moving forward with either the stadium sponsorship or the uniform sponsorship or neither one.