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In 2000, the Mets agreed to buy out the remaining $5.9 million on Bonilla's contract.

However, instead of paying Bonilla the $5.9 million at the time, the Mets agreed to make annual payments of nearly $1.2 million for 25 years starting July 1, 2011, including a negotiated 8% interest.

At the time, Mets ownership was invested in a Bernie Madoff account that promised double-digit returns, and the Mets were poised to make a significant profit if the Madoff account delivered -- but that did not work out.

Here are some other notable deferred-money contracts:

• Bobby Bonilla (again): A second deferred-contract plan with the Mets and Orioles pays him $500,000 a year for 25 years. Those payments began in 2004.


• Bret Saberhagen: Saberhagen will receive $250,000 a year from the Mets for 25 years (payments also began in 2004; this was the inspiration for Bonilla's deal).

Best. Deal. EVER!

Someone actually managed to explain how this could make sense on one of the sports radio stations. Can't remember how though.

https://ftw.usatoday.com/2015/07/new-yo ... -2035-deal

https://fansided.com/2020/07/01/bobby-b ... ppreciate/

P.S. The good news is the Wilponzis are so broke, they'll have to sell the team. Mets fans are cheering!

i would love to hear someone explain the logic on this.

Flumper wrote: ↑Wed Jul 01, 2020 10:42 pm i would love to hear someone explain the logic on this.

The Mets were greedy, and duped. Instead of paying Bonilla the $6M they owed him, they thought Madoff would earn them more money per year than they were going to pay Bonilla each year of the long term agreement.

B-Tender wrote: ↑Wed Jul 01, 2020 10:49 pm

Flumper wrote: ↑Wed Jul 01, 2020 10:42 pm i would love to hear someone explain the logic on this.

The Mets were greedy, and duped. Instead of paying Bonilla the $6M they owed him, they thought Madoff would earn them more money per year than they were going to pay Bonilla each year of the long term agreement.

Well, I got that part, but there are just so many things wrong with it. $1.2 would pay off a $6 million deal in 6 years even with interest. So why 25 years? That's just lunacy. And what is the point of saying there is 8% interest? How does that even enter into this?

Flumper wrote: ↑Wed Jul 01, 2020 10:51 pm

B-Tender wrote: ↑Wed Jul 01, 2020 10:49 pm

Flumper wrote: ↑Wed Jul 01, 2020 10:42 pm i would love to hear someone explain the logic on this.

The Mets were greedy, and duped. Instead of paying Bonilla the $6M they owed him, they thought Madoff would earn them more money per year than they were going to pay Bonilla each year of the long term agreement.

Well, I got that part, but there are just so many things wrong with it. $1.2 would pay off a $6 million deal in 6 years even with interest. So why 25 years? That's just lunacy. And what is the point of saying there is 8% interest? How does that even enter into this?

The whole thing is lunacy, that's why it's amusing. The Mets thought that by deferring any payments for ten or so years the return on investment would more than make up for the payments. Of course Bonilla wanted interest. He was waiting ten years for the money.

sometimes you wonder how someone can be so stupid and get so wealthy. (the met's owner, i mean).

Flumper wrote: ↑Wed Jul 01, 2020 11:46 pm sometimes you wonder how someone can be so stupid and get so wealthy. (Donald Trump, i mean).

FTFY

Reservoir Dog wrote: ↑Wed Jul 01, 2020 11:51 pm

Flumper wrote: ↑Wed Jul 01, 2020 11:46 pm sometimes you wonder how someone can be so stupid and get so wealthy. (Donald Trump, i mean).

FTFY

For the love of God, not here too.

The Mets even were nice enough to trade Bonilla to the Marlins to win a championship before requiring him to buy him out.

B-Tender wrote: ↑Wed Jul 01, 2020 10:55 pm

Flumper wrote: ↑Wed Jul 01, 2020 10:51 pm

B-Tender wrote: ↑Wed Jul 01, 2020 10:49 pm

Flumper wrote: ↑Wed Jul 01, 2020 10:42 pm i would love to hear someone explain the logic on this.

The Mets were greedy, and duped. Instead of paying Bonilla the $6M they owed him, they thought Madoff would earn them more money per year than they were going to pay Bonilla each year of the long term agreement.

Well, I got that part, but there are just so many things wrong with it. $1.2 would pay off a $6 million deal in 6 years even with interest. So why 25 years? That's just lunacy. And what is the point of saying there is 8% interest? How does that even enter into this?

The whole thing is lunacy, that's why it's amusing. The Mets thought that by deferring any payments for ten or so years the return on investment would more than make up for the payments. Of course Bonilla wanted interest. He was waiting ten years for the money.

I would like to know the present value of the payments at the time of signing of the contract.

I also think Bonilla should send his agent a new car every year. Many athletes end up broke and he’s set for life,

What I’m reading is that the deal is essentially a wash from paying him the lump sum.

Wut wrote: ↑Thu Jul 02, 2020 10:02 pm What I’m reading is that the deal is essentially a wash from paying him the lump sum.

Yeah, that's essentially what I heard. And if the Made-off deal wasn't a scam, they might've done better than a wash.


But being a Mets fan:

Yay, the Wilponzis have to sell!


Though I don't think I want ARoid to win, continuing his eternal competition with Jeter.

Happy BB Day everyone!