The following assumptions are made for (1) and (2):
- Insurance is paid whether or not the player participates in a match.
- The player pays a fee to participate in a match.
- The player receives a wage for actually playing each match.
- Suspensions and fines are not covered by insurance.
(1) Assume suspensions all in one month.
Unused matches fees: 3*25000=R75000 (assume R25000 outlay for participating)
Lost match opportunity: 3*50000=R150000 (assume R50000 for actually playing)
Fine: R10000;
Insurance cost: R5000 (1 month)
Net loss: 150000-75000+10000+5000=R90000 (opportunity cost)
(2) Assume suspension over 3 months (3 matches in 3 months).
Additional insurance=2*5000=R10000; net opportunity cost=90000+10000=R100000.