happy Bobby Bonilla day

[natbornkiller]

[NorCalSCM]

Originally Posted by natbornkiller

Is today payday?

[Chrisyork33]

My man still gettin' paid from the Mets!

[Chrisyork33]

Originally Posted by NorCalSCM

Is today payday?

I like your style

[Skipscards]

Originally Posted by NorCalSCM

Is today payday?

Yep. Every year until 2035. By the time this is over, they will have paid him nearly $30 million for not having to pay him $5.9 million for one season.

[beauspencer]

Most people look at this deal comparing the whole numbers. That's not how finance works. This is actually a very wise move on the part of the New York Mets.

Not only did they save the $5.9 million. The Mets used that money they would have paid Bonilla in 2000 by signing Mike Hampton for $5.75 million. Hampton had a great season and helped the Mets get to the World Series. Oh, and by the way. When the Rockies signed Mike Hampton after the 2000 season the Mets received a compensatory draft pick. That draft pick.... David Wright.

That's strictly the baseball stand point. Now on to the financing.

This was in 2000. The first payment to Bonilla doesn't take place until July, 2011. That is 11 years of deferment (time value of money). Using inflation alone, $5.9 million in 2000 equals $7.7 million in 2011. That does not even take into account that initial sum sitting in an interest bearing account.

Now here's some number crunching (source: Business Insider - http://ftw.usatoday.com/2015/07/new-...ract-2035-deal)

If Bonilla had accepted the $5.9 million in 2000 and invested the entire amount at 8% interest, the original investment would have grown to $104.1 million by 2035*. If instead, Bonilla takes his annual payment and invests that with an 8% annual return, he would have $95.2 million by 2035….

But more importantly to the Mets, if they invested the $5.9 million at 8% interest in 2000. That money would have grown to more than $14 million before they had to make a single payment. And that money would continue to draw interest even while they are making payments.

[Skipscards]

Originally Posted by beauspencer

Most people look at this deal comparing the whole numbers. That's not how finance works. This is actually a very wise move on the part of the New York Mets.

Not only did they save the $5.9 million. The Mets used that money they would have paid Bonilla in 2000 by signing Mike Hampton for $5.75 million. Hampton had a great season and helped the Mets get to the World Series. Oh, and by the way. When the Rockies signed Mike Hampton after the 2000 season the Mets received a compensatory draft pick. That draft pick.... David Wright.

That's strictly the baseball stand point. Now on to the financing.

This was in 2000. The first payment to Bonilla doesn't take place until July, 2011. That is 11 years of deferment (time value of money). Using inflation alone, $5.9 million in 2000 equals $7.7 million in 2011. That does not even take into account that initial sum sitting in an interest bearing account.

Now here's some number crunching (source: Business Insider - http://ftw.usatoday.com/2015/07/new-...ract-2035-deal)

If Bonilla had accepted the $5.9 million in 2000 and invested the entire amount at 8% interest, the original investment would have grown to $104.1 million by 2035*. If instead, Bonilla takes his annual payment and invests that with an 8% annual return, he would have $95.2 million by 2035….

But more importantly to the Mets, if they invested the $5.9 million at 8% interest in 2000. That money would have grown to more than $14 million before they had to make a single payment. And that money would continue to draw interest even while they are making payments.

Except that all assumes fixed inflation and a guaranteed return on investment of 8%. In case you haven't watched the market the since 2000, and annual return of 8% hasn't exactly a piece of cake and inflation hasn't exactly performed to expectations. In fact, considering all the financial mismanagment by athletes it is also just as likely Bobby would have lost all of it in the crash.

Say what you will, but $30 Million > $5.9 Million. I'm sure Bobby will try to get by.

[beauspencer]

Except that all assumes fixed inflation and a guaranteed return on investment of 8%. In case you haven't watched the market the since 2000, and annual return of 8% hasn't exactly a piece of cake and inflation hasn't exactly performed to expectations. In fact, considering all the financial mismanagment by athletes it is also just as likely Bobby would have lost all of it in the crash.

That is correct. It is hard using static numbers overall. All things being equal, it's in my opinion it's a stalemate with both parties coming out on top. We've seen the outcome from the Mets organization on the baseball side. On the financial side, it's hard to know how Bonilla would have handled the $5.9 million as opposed to his yearly $1.1 million.

Say what you will, but $30 Million > $5.9 Million. I'm sure Bobby will try to get by.

Yes, obviously $30 million > $5.9 million. That's simply not the case here, though.

[broadway6]

Yes, obviously $30 million > $5.9 million. That's simply not the case here, though.[/QUOTE]



Bobby would disagree. He would be broke right now and investing can be risky. He invested in a sure thing. Not bad for 60 games played.

[Chrisyork33]

Academically the time value argument makes sense. But the other argument is would Bobby bo invested that money wisely in 2000. Maybe he understood himself better than most do and he wanted an annuity for the later part of his life.

[Gilbey]

The money was invested with Bernie Maddoff and is now worth zero.

[kyle1707]

o to recap, Bonilla has already received $15.3 million in deferred money. Over the next 18 years, he has another $27 million to go.

All this looks even better from his home in Sarasota, Florida, where there's no state income tax.

[Orange October]

I read an article earlier (I think on The Athletic) about how the Braves have been paying Bruce Sutter in a similar manner since 1985.

Link to an article not locked behind a paywall:

https://www.ledger-enquirer.com/spor...213840114.html


"As The Athletic’s Dan Lewis reported, the Braves are still paying former reliever Bruce Sutter, who played with the Braves from 1985 to 1988. The 1979 NL Cy Young Winner signed a six-year, $9.1 million deal with the Braves before the 1985 season, but Sutter opted to have the money deferred.

“Sutter was only paid about $750,000 per year while under the Braves’ control,” Lewis wrote. “For the thirty years after he retired — 30!!! — the Braves agreed to pay him no less than $1.12 million per year, and potentially more if interest rates spiked above a negotiated floor of 12.3 percent. [They haven’t.] That ends in 2021, and it’s only 2018, so Bruce Sutter, at some point this year, received or will receive a check for $1.12 million.”

Sutter retired four years into his six-year deal with the Braves, but as Lewis explained, Sutter still received his money because Atlanta agreed to pay the $9.1 million in full when the contract was agreed to. The $750,000 Sutter was paid each season were interest payments of about 8 percent on his contract.

“As a pretty funny, and obviously unintended side effect, Sutter ended up getting his negotiated ‘salary’ in both 1989 and 1990, even though he was retired,” Lewis wrote.

Those payments of $750,000 during his playing career and the $1.12 million that followed are only interest payments, Lewis points out. That means in 2022, the Braves still owe Sutter the $9.1 million that he deferred."




Worked out pretty well for Sutter too.

[Jman330]

Originally Posted by Gilbey

The money was invested with Bernie Maddoff and is now worth zero.

If I remember correctly there was some sort of situation with Bonilla, The Mets and Madoff. Can’t remember the exact details though

[moose84]

Still receiving money from the Orioles as well

I would like to hire his agent

[antmr7]

I texted my friend who is a Mets fan and asked how he felt that Judge and Severino are making the same amount combined that the Mets are paying Bobby lol

[prospects]

Imagine owning a baseball team, consistently telling people what to do, and having all of those orders backfire each and every season.

That is the Wilpons.

[HeritageKing]

Who has the bigger dome...Bonds or Bonilla?

[natbornkiller]

NEXT WEEK

[Rockiesfan1993]

That's today I thought it was July 1st.

The payments come every July 1, which some media members refer to as "Bobby Bonilla Day".

https://en.wikipedia.org/wiki/Bobby_Bonilla

[asujbl]

Originally Posted by Rockiesfan1993

That's today I thought it was July 1st.

[Rockiesfan1993]

Originally Posted by asujbl

Way to not to contribute to the conversation at all.

[asujbl]

Originally Posted by Rockiesfan1993

Way to not to contribute to the conversation at all.

Dude...

This is a 2 year old thread.

It was bumped saying "next week" (meaning July 1st)

You posted saying "I thought it was July 1st"

What part of this are you not following?

[natbornkiller]

[Peties Army]

Get that money Bobby Bo