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GatorSal
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| Number of Posts: | 1 |
| Registered on: | 11/10/2025 |
| Online Status: | Not Online |
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Long time lurker....first time poster... I have always enjoyed LSU fans (can't stand Nole fans)
Think about BK's potential salary like winning the lotto. If you win the lotto, you can choose an upfront payment or several years of set payments. If you accept the "lump sump payment", it is less than the total set payments over several years. This is because the time value of money.
Given BK will likely invest considerable funds, he can get a high return on investing a large sum now. The stock market is hot now especially in AI stocks. This is good news for BK from an investment perspective. So he may be willing to take quite a bit less that the $50sh million as a lump sum payment because he can invest and come out better than if he kept the existing contract.
Think about BK's potential salary like winning the lotto. If you win the lotto, you can choose an upfront payment or several years of set payments. If you accept the "lump sump payment", it is less than the total set payments over several years. This is because the time value of money.
Given BK will likely invest considerable funds, he can get a high return on investing a large sum now. The stock market is hot now especially in AI stocks. This is good news for BK from an investment perspective. So he may be willing to take quite a bit less that the $50sh million as a lump sum payment because he can invest and come out better than if he kept the existing contract.
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