Real-Life Math
You've got a hot new athlete on your client list. You figure
this kid could really go far. As his agent, you're going to play an important
role in making sure he gets the best deal possible.
Your new client
is a talented young center who stood out in junior hockey. He scored 85 goals
and 55 assists in his last year in junior hockey and expects to take the NHL
by storm.
Word came yesterday that the New York Rangers have selected
him third overall in the first round of the NHL draft. Your client may not
know it yet, but you and he are in a great bargaining position. Now it's
your job to make it pay off -- for both of you!
You arrive for a meeting
with the club's representatives. You're ready to get down to business.
They
present you an offer of $500,000 per year as a base salary. You ponder the
salary for a second and then reply:
"Gentlemen, we were thinking more
along the lines of $750,000."
The Rangers representatives turn toward
each other and quietly discuss the situation. Finally, they come back with
another offer: $500,000 per year plus a $25,000 signing bonus. You shake your
head.
"I think we can do a bit better than that. Let's discuss
some scoring and playoff bonuses."
After conferring again for another
couple of minutes, the club reps agree.
You sit down and for the next
3 hours, you hammer out a deal. You're 4 hours late for dinner when you
finally have what you feel is their best offer.
You got your client
a $500,000 base salary, a $25,000 signing bonus and bonuses for playoffs and
scoring. Here they are:
- For each goal the player scores beyond 20, he'll receive a $1,000
bonus
- For each goal beyond 30 he'll receive $2,000
- For each additional goal he scores beyond 40 he'll receive $6,000
- For each assist he collects, he'll get a $1,000 bonus
- Your player will also get individual bonuses for every round the Rangers
win in the playoffs
- For a win in the first round, each player will receive $5,000
- A second-round win is worth another $10,000
- If they reach the semi-finals in round three, each player gets another
$15,000
- If the team makes it the Stanley Cup finals, each player will receive
a $25,000 bonus. If they reach this point, the team members will have made
an additional $55,000 each
Your player is happy with his deal and you think you've done
some good work on his behalf. He wants you to give him some idea of the kind
of money he can expect to make this coming year. You wouldn't mind knowing
yourself, since your earnings depend on this too.
Based on his statistics
for the previous year, and taking into account the tougher play of the NHL,
you estimate your player will score approximately 43 goals and 33 assists.
If New York loses in the third round of the playoffs, how much will he have
made for the year? Don't forget to deduct 7 percent from
the total for taxes.