Monday, October 1, 2018

How do Different Contracts Structuring Change Incomes for Variety of Position Players?

Image result for how much was khalil mack contract
The  article “Agents Take: How Your Team Structures Deals -- And Why It Matters”  by Joel Corry  represents the economic principle, people respond to incentives in predictable ways. Specifically, the articles argues that contracts can be structured to give different players different incentives to perform.

 Players when signing a contract with a team are only guaranteed a certain amount of money. For some players “The only guaranteed money with this structure is a signing bonus, which is prorated or spread out evenly over the life of a contract for a maximum of five years.” This is important because NFL players sometimes forget they have to wait to get all their money. And if a player gets hurt that is in a easy position to fill, they can lose a good amount of money. Because a franchise won't really need that player anymore.

 Football players don’t really know how football contracts work. But “Kaepernick's deal helped shed light on how NFL contracts are generally structured because of the scrutiny it received. Average salary and total compensation are misleading because of the lack of security with NFL contracts.” This explains that NFL contracts don’t always work out like it suppose to be. Since players always lose money by getting traded from a team before their contracts are up, or getting suspended for a long period of time.

 Future Research Question: What can players do that would endanger their football career and their life?

1 comment:

  1. I didn't know about how the commonality of injury when playing a certain position could impact how much a player is paid and how much money they can lose if they do get injured during the season. For your next blog post I would suggest using examples of how much players lose if they get injured and how they can negotiate contracts to avoid losing money if they are injured during the season

    ReplyDelete