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The "contract value" is the total of all of the money to be received by each...

The "contract value" is the total of all of the money to be received by each athlete over the duration of their contract. Why would the "present value" of each contract be a better indicator of the value of the contract rather than the contract value? Hint: some of the money in these contracts will be paid out long after the athlete retires.
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contract value would be received during the duration of the contract and will be spread over the length of period and these future values would be subject to inflation due to which value of money received would be low. It would be better to discount the future cash flows to a discount rate and find a present value i.e. present value of all the future cash flows so by knowing the present value one can compare the present value of contract with the other options available and he/she can make a better deal by doing a comparison between other alternatives too.

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