Is Shemar holding out?

[SouthernFan]

(06-14-2025, 05:32 PM)TheLeonardLeap Wrote: $18m now is $3m more than $15 now. That's a big difference.

That's $3m that YOU get to make money off of through investments for 2 years instead of the team making money off of it before you get it. Say you make a conservative 7% off of it in year 1 and then 7% more in year 2.

You just turned that $3,000,000 into $3,434,700. So you get +$434,700.

Meanwhile say you DON'T get that $3m now and instead you get it two years from now... inflation is a thing and that $3m will be worth less than it was two years ago. $3m in 2023 is now equal to $3,165,043 in 2025. So not only are you losing the opportunity to make money on your money, you're also having your eventual payout be worth less.

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So between the two, it is a ~$599,743 difference on if you get that $3m today or if you get it 2 years from now.

(Obviously this is a little simplified and there's a lot more things involved in it, but the premise is the same.)

In general, you have the right idea as to the time value of money and opportunity cost. However, the impact is far less than your calculations as in today’s environment a 7% guaranteed return is hardly conservative and inflation is down compared to 2023 to 2025. Also you completely ignore taxes which at this income level would exceed 40% in combined federal and states taxes. So, yes, it’s a lot more complicated than your premise suggests.

All of that said, I have not seen any details regarding the timing of contract payments. I have seen reports that the issue is not with the timing of payouts and is solely regarding the voiding of guarantees language that is common in current NFL contracts and was included in the contracts of the players picked immediately before and after Stewart. In addition he is reportedly the only draftee to not sign the injury waiver and refuse to practice during OTA’s and mini-camps.

Stewart and his camp are in the wrong here and the Bengals are being unfairly criticized.