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rjackson · 07-26-2012, 08:49 PM

I didn't know why it happened in the game either. Thanks for asking.

As for real life, the biggest reason is the time-value of money. Just think inflation so that USD1million now is not that in five years--plus the team can keep that money and make interest to pay the extra part of the back end. So 1m this year and 1.1 next is a 2.1m escalating contract--but they are actually only paying out 2m from their own pockets with the .1m coming from interest. It helps to entice the player a bit more.

07-26-2012, 08:49 PM	#7
rjackson MVP OVR: 1 Join Date: Apr 2005	Re: Contracts I didn't know why it happened in the game either. Thanks for asking. As for real life, the biggest reason is the time-value of money. Just think inflation so that USD1million now is not that in five years--plus the team can keep that money and make interest to pay the extra part of the back end. So 1m this year and 1.1 next is a 2.1m escalating contract--but they are actually only paying out 2m from their own pockets with the .1m coming from interest. It helps to entice the player a bit more.