How do pro sports team determine how much an athlete is worth?
Obviously we might have relative valuation: sure if LeBron is being paid 50M a year, then maybe ABC is worth 1/3x. But how is LeBron determined to be worth 50M/yr?
Sounds silly, but genuinely curious about how teams get precise numbers (like a $235mm contract—how is each $5mm determined?)
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Just think about it dude.
Gotcha.
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