You are a professional athlete and recognized as one of the best in your sport. Fortunately for you, you are currently a free agent and deciding with which team you will sign your next contract. You have received the following three contract offers:

Team A: 10 year contract. No signing bonus. Annual salary of $10 million.

Team B: 5-Year contract. $8 million signing bonus. Annual salary of $13 million.

Team C: 5 Year contract. $45 million signing bonus. Annual salary of $1 million.

The signing bonus is received right now while the first annual salary payment is paid one year from today.

Which contract would you choose and why? Explain the financial factors that would influence your decision.

Answer rating: 100% (QA)

I would choose Team B Here are the financial factors that would influence my decision Total contract ... View the full answer