This is the accountant in me speaking, but with Biglia, there is a couple options:
1) Obviously you sell him. Preferably for at least 6 mil in order not to take a loss. But if not, then sell for whatever
2) You keep him, take a 6mil amortization expense + 7mil salary expense. Total hit on the books this year = 13mil
3) Mutual consent. You take the loss of 6mil in disposing of the asset...but you "escape" the 7mil salary that you would have also gotten hit with. We'll probably have to gove him a "golden handshake" as well, so I don't think we'll escape the full 7mil hit anyway
So from those options...clearly #1 is the best. Even if we sell him for less then 6mil, it's much better then to just rescind his contract. #3 should be the absolute last resort...but we have bigger issues to think about if we are worried about a 7mil salary hit
1) Obviously you sell him. Preferably for at least 6 mil in order not to take a loss. But if not, then sell for whatever
2) You keep him, take a 6mil amortization expense + 7mil salary expense. Total hit on the books this year = 13mil
3) Mutual consent. You take the loss of 6mil in disposing of the asset...but you "escape" the 7mil salary that you would have also gotten hit with. We'll probably have to gove him a "golden handshake" as well, so I don't think we'll escape the full 7mil hit anyway
So from those options...clearly #1 is the best. Even if we sell him for less then 6mil, it's much better then to just rescind his contract. #3 should be the absolute last resort...but we have bigger issues to think about if we are worried about a 7mil salary hit