happy Bobby Bonilla day

[LCM1223]

Originally Posted by Rockiesfan1993

Way to not to contribute to the conversation at all.

Welcome back

[mouschi]

So soon? I feel like we just celebrated this! I don't know why, but for some reason, I get a chuckle each year. Get paid, BobbyBo. Get paid!

[DSizzle31]

This article is 4 years old but shows that the Mets are far from the only team that has ongoing payments like this.

https://mlb.nbcsports.com/2015/07/01...the-worst/amp/

[natbornkiller]

payday

[awz50]

I wonder how he celebrates it

[Shadowsonic2004]

What's he going to do after 2035.

[Gatorsmld]

My most favorite MLB contract of all time

[no10pin]

Originally Posted by awz50

I wonder how he celebrates it

[steadned36]

Happy Bobby Bonilla Day!

Honorable Mention to Bruce Sutter - What a deal!

[JWBlue]

I think I read on Fangraphs that the Bonilla contract was actually a fair deal for the Mets.

[Metsaholic230]

It was only a fair deal when they were pulling fat profits from a ponzi scheme. I was so excited when it looked like they were selling. Still seems like it will happen but they will wait until the pitching staff of doom is all gone I'm sure.

[Boo]

Originally Posted by JWBlue

I think I read on Fangraphs that the Bonilla contract was actually a fair deal for the Mets.

Originally Posted by Metsaholic230

It was only a fair deal when they were pulling fat profits from a ponzi scheme. I was so excited when it looked like they were selling. Still seems like it will happen but they will wait until the pitching staff of doom is all gone I'm sure.

Yes this^^^. Madoff made it a not so fair deal.

[japes3]

I get exactly the point of time value of money, but the funniest thing is the fact that Met's ownership was getting over 8 percent a year and most likely made this move because the numbers made sense.

Then you know what?

BERNIE MADOFF happened and the rest is history.....

The story alone that Bobby Bonilla was the highest paid person by the Mets one year not too long ago was comical.


I celebrate this day every year, usual while watching baseball but this year is dumb

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.

[Kevin]

Ahhh, the gift that keeps on giving. For another 15 years, LoL!

[n1nesports]

Originally Posted by natbornkiller

payday

I saw your avatar and thought I was on the wrong website!

[natbornkiller]

manana

[JrFinest]

Thread needs some cards.

[Archangel1775]

Legend

[quackhead]

[WaxPax]

The new Mets owner is a fan and well aware of this annual embarrassment, looks like they plan on having some fun with this at their own expense...stay tuned...

[Kevin]

We need a Bobby Bonilla Topps Now card.

[jmarascojr]

Cohen should roll Bonilla out every year to CitiField, make it a legitimate Bobby Bo Day until the contract runs it's course.

Sell some Bobby Bo memorabilia in the gift shops and make some money back.

Give him a cake every year and one of those big Lotto checks at home plate and milk it for all it's worth...

Mets gonna Mets

[NYRE2PECT]

Originally Posted by jmarascojr

Cohen should roll Bonilla out every year to CitiField, make it a legitimate Bobby Bo Day until the contract runs it's course.

Sell some Bobby Bo memorabilia in the gift shops and make some money back.

Give him a cake every year and one of those big Lotto checks at home plate and milk it for all it's worth...

Mets gonna Mets

Why not!? Embrace it.

[vegetable]

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.

Dude 8 percent return and not including the THREE economic collapses makes this a joke

[Silent George]

Originally Posted by vegetable

Dude 8 percent return and not including the THREE economic collapses makes this a joke

His 8% return definitely includes the downturn years. Average S&P year since 2000 is 8.19% a 7+ year microcosm of the S&P will almost always find an average between 8-11. It's a remarkably safe and consistent investment. It's why financial firms are able to build giant high rises based on guaranteed returns while screwing a lot of people with annuities. In this case it's on the low end because 2008 was the 2nd worst year in history, which also drags down the CAGR to around 6.5%