- Oct 26, 2018
With a player, they are only as valuable as the years they play for the team, so the urge for immediate payback is right away.This is the wrong example. You’re speaking to valuation. The example you want is if the Marlins give a player a 5 year contract for $200 million they want a return on that investment and they get it through season ticket sales and selling that players jersey and promoting that player. The 7.5 billion is similar in that they want it to pay for itself so they’ll try to get a return on that investment somehow.
Companies getting bought out is totally different because the payback can be 10 or 20 years. Even more. Companies always have an inherent value too, so MS can always sell Zenimax and get money back.
With athletes, you can trade or sell them to other teams, but once the player is too old or stinks, the value is basically zero. That's why athletes need an immediate payback to make a contract worth it.
With companies and valuation, every company still has value, so MS doesn't ever need to make back $7.5 billion to make it worth it. Solid companies also get sold for higher valuations. You never know, maybe MS will sell off Zenimax for $10 billion at some point. Athletes in the long term don't because they are over the hill and retire.