One aspect of contract negotiations many players are still novices in understanding and appreciating (but not all I must stress) is the time value of money.
It is one of the most fundamental aspects of financial management taught at business school.
Basically, it is more important to have money in the hand now than it is a later date. For various reasons to include the likes of inflation.
In other basic ways, time and money come into a play when negotiating a new contract. Sometimes when the 1st or 2nd offer isn't right it is the correct strategy to wait until the right deal is tabled or receive another elsewhere.
However, getting this balance right between waiting and accepting a deal is important. Wait too long on the best deal you have tabled and any perceived financial increases or additional benefits you may have gained by receiving a later offer may be eliminated or in-fact left you in a worse position because of the amount of time you've had to wait for that offer.
Chief Executive play on time v money situations often - but the problem for them is, not all players, partners, parents or families grasp it - so it's a strategy that is not always a good one for Chief Executives and likewise if an agent doesn't explain it properly to their Client - they may end up not advising them correctly - but there are also those players who don't want to listen because they don't understand and don't want to learn - as a player never be one of those!
The fundamental thing I'd advise clients is to let their intelligent, financially sensible brain come to the forefront of decisions rather than ego. I've seen players turn down £49,000 a week deals to hold out for £50,000 but if it takes 8 months of holding out to ascertain that figure who is the winner? A players ego may feel better at that at figure because it looks pretty and competitive within the squad - but in-fact the club got the better deal. Not just in the difference there but the difference from your original pay packet.
I have to say to players of all ages, if you have a good agent who does understand the time value of money, listen to them and forget about comparing yourself in the dressing room. If you start comparing your finances in the dressing room you're thinking more about ego than financial sensibility. I've seen all the problems from 17 year olds to 37 year olds, all I can say is be smart, be respectful, be different from the others and make sure you sign contracts that are smart financially and at the end of the day let you just get on and play.
