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Committing to multi-year guarantees upfront
The strategy of offering multi-year guarantees upfront in contracts, as observed in the case of Amazon with a comparison to the Houston Rockets signing Jeremy Lin and Omer Osage, involves putting all the money for multiple years in escrow immediately. This tactic can put cash-strapped companies like Warner in a precarious financial position, as it requires them to finance multiple years of commitments upfront, potentially risking the future financial stability of the company.