Undergraduate

The star quarterback Patrick Mahomes led the Kansas City Chiefs to a Super Bowl win in 2 0 2 0 . As a consequence, he

The star quarterback Patrick Mahomes led the Kansas City Chiefs to a Super Bowl win in 2020. As a consequence, he began new contract negotiations that will likely make him the highest-paid football player of all time. Suppose the Chiefs agree to pay Mahomes $40 million per year. Also suppose that the Chiefs would have paid a different quarterback $5 million per year had Mahomes decided to play for a different team.
Explain briefly what the owner of the Chiefs must believe about yearly revenue when Mahomes is part of the team.
A.
He must believe that Mahomes will generate a yearly revenue of $45 million.
B.
He must believe that Mahomes will generate a yearly revenue of $5 million.
C.
He must believe that yearly revenue will be $35 million or more with Mahomes than it would be with a different quarterback.
D.
He must believe that yearly revenue will be $40 million more with Mahomes than it would be with a different quarterback

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