http://www.cbssports.com/mlb/blog/eye-on-baseball/22600996/july-1-is-bobby-bonillas-day-to-get-paid-by-mets

July 1 is Bobby Bonilla's day to get paid by Mets
By Matt Snyder | Baseball Writer
July 1, 2013 9:05 pm ET

It's July 1, so that means Bobby Bonilla got a check for $1,193,248.20 today, just as he will every July 1 through 2035. That's due to a deferral clause from when the Mets bought out the final year of Bonilla's contract before the 2000 season.
The deal was signed by the Marlins in 1996, but Bonilla was traded to the Dodgers in the 1998 blockbuster that involved Gary Sheffield and Mike Piazza. Bonilla was later flipped to the Mets. He then only played 60 games in 1999, hitting .160/.277/.303, so the Mets saw fit to get rid of him before the 2000 season instead of paying him $5.9 million that year.
And now they'll be paying him a bit more than four times that -- just stretched out over 25 years.

.

baseball teams (especially ones in New York) make money. Prior to the Madoff shit, I wouldn't be surprised if the Mets were making 10% profit most years.

Let's say 8% though, just to be conservative.

Taking the 5.9 million they owed him in 2000, and investing it back in the team until 2035 when they are done paying him, that would be $87 million dollars if it earned at 8%.

They could pay him out of the interest and still make more money than if they just paid him the 5.9 mil up front.

The only reason it seems bad now is because of the money they lost to Madoff, and because most sports talk radio people don't understand accrued interest.

They were raking in money with madoff and assumed they would continue to.

I'm not convinced they do that deal, if they weren't enjoying the profits they were at the time.

I think they were raking in money just from the actual operations of the team. Ticket sales, cable revenue, merch., etc.

Bonilla wasn't the only one but the most egregious.

http://www.nytimes.com/2011/02/02/sports/baseball/02mets.html?pagewanted=all&_r=0

One former executive with the Mets recalled how it could work:

“I remember vividly Madoff’s name being brought up a lot when” the team “would negotiate contracts, particularly with deferments,” said the former executive, who would not be identified because he did not want to harm his career in baseball. “That money would be turned over to Madoff.

The former employees of the Mets said substantial aspects of the club’s financial operations seemed to flow through, or wind up with, Mr. Madoff — annuities set up for players, cash generated by sponsorship deals, and more. The team regularly discussed investing deferred money from long-term player contracts in Madoff accounts. Bobby Bonilla was among the players who had their deferred money put with Mr. Madoff, one former employee said.

In those cases, the players would agree to take less money up front and be paid over a number of years, earning interest. It appears the Mets would be able to keep any money earned over that agreed rate, and Mr. Madoff regularly produced returns that outdid prevailing interest rates.

And when the costs of disability insurance spiked, the former employee recalled, the Mets began to self insure. They did it by investing premiums with Mr. Madoff, he said.

FUCK!

cmon

But at least he's off the salary cap.

http://www.cbssports.com/nhl/blog/eye-on-hockey/22601021/report-rick-dipietro-to-be-bought-out-by-new-york-islanders

http://www.cbssports.com/nhl/blog/eye-on-hockey/22601021/report-rick-dipietro-to-be-bought-out-by-new-york-islanders

i like it!


does it even matter?

>http://www.cbssports.com/mlb/blog/eye-on-baseball/22600996/july-1-is-bobby-bonillas-day-to-get-paid-by-mets
>
>July 1 is Bobby Bonilla's day to get paid by Mets
>By Matt Snyder | Baseball Writer
>July 1, 2013 9:05 pm ET
>
>It's July 1, so that means Bobby Bonilla got a check for
>$1,193,248.20 today, just as he will every July 1 through
>2035. That's due to a deferral clause from when the Mets
>bought out the final year of Bonilla's contract before the
>2000 season.
>The deal was signed by the Marlins in 1996, but Bonilla was
>traded to the Dodgers in the 1998 blockbuster that involved
>Gary Sheffield and Mike Piazza. Bonilla was later flipped to
>the Mets. He then only played 60 games in 1999, hitting
>.160/.277/.303, so the Mets saw fit to get rid of him before
>the 2000 season instead of paying him $5.9 million that year.
>And now they'll be paying him a bit more than four times that
>-- just stretched out over 25 years.

I'd be hitting the George Jefferson walk every July 1st

http://l.yimg.com/a/p/sp/editorial_image/dc/dcfcada48e5faf68a4f4cc04a0f5a059/ten_things_to_do_with_mr_met_if_you_buy_a_share_of_the_mets.jpg

im dying lol

he had the goods and at time looked like he might be arguably an all time great. anyway the way he gets paid for life is like the owner of the restaraunt in goodfellas who turns the club over to paulie, no matter what happens the mets gotta pay bobby bo

your team's a walking dumpster fire? Fuck you, pay me.

That last Brewer series at Chiti Field only averaged 14K a night? Fuck you, pay me.(c)BobbyBoCicero

i mean he got the Mets in a place where they have to burn things down. smart move

yeah, the mets suck. yeah the mets are a joke.

but if you think that the mets have to tear down their roster and start over with cheaper players because they have to pay Bobby 1.2 million a year, you have no idea what you're talking about.

VERY VERY LOUD!! XD

mets put a fantastic product out there, it's totally worth it

_________________________________________
The Combat Jack Show is the best hip-hop related internet radio show
http://thecombatjackshow.com/

Gumbo, gris-gris, plus my etouffee got em paying 20 bones

_________________________________________
The Combat Jack Show is the best hip-hop related internet radio show
http://thecombatjackshow.com/

Gumbo, gris-gris, plus my etouffee got em paying 20 bones

All of the core financial principles state if you are not earning interest on the money you want to get the money under your control as soon as possible. Even if he earned interest was it greater than what he could have reasonably expected to earn between the time he signed the deal and now? The Time Value of Money states- - The time value of money is the value of money with a given amount of interest earned or inflation accrued over a given amount of time. The ultimate principle suggests that a certain amount of money today has different buying power than the same amount of money in the future. This notion exists both because there is an opportunity to earn interest on the money and because inflation will drive prices up, thus changing the "value" of the money. The time value of money is the central concept in finance theory.

We don't know all of the details but but on the surface to me this looks like a fucked up deal for Bobby.

http://25.media.tumblr.com/tumblr_lc0pfzqZGB1qeliv2o1_r2_500.gif

guaranteed until you're 73 is a good look.

The lump-sum interest would've only been an extra $9mil IF he had saved and invested it all until he was 73...http://www.seattlepi.com/technology/businessinsider/article/CHART-The-Crazy-Contract-The-Mets-Gave-Bobby-4643113.php

saying but the fact the remains he could have done some basic things with that money and got a greater return over the same period time. We have no way of knowing if he would have invested his money but he could have with a very real possibility of making more money over the same period of time.

at 70 fucking three vs some GUARANTEED shit all the way up to that point.

What if he doesn't live until he's 73 or his health is deteriorated to the point that it doesn't matter?

invested properly for an extended period of time.

Bobby receives $1 million a year for doing nothing. Your criticism is pointless.

http://www.seattlepi.com/technology/businessinsider/article/CHART-The-Crazy-Contract-The-Mets-Gave-Bobby-4643113.php


Bobby Bonilla's contract of deferred payments from the New York Mets is considered a laughing stock amongst baseball fans as the Mets chose to give Bonilla 25 payments totaling $29.8 million (starting in 2011) instead of the $5.9 million they owed him in 2000.

But to criticize the deal is to not understand that Bonilla gained nothing and the Mets actually came out ahead in the 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* (blue line in chart below). If instead, Bonilla takes his annual payment and invests that with an 8% annual return, he would have $95.2 million by 2035 (orange line in chart below).

In other words, Bonilla lost nearly $10 million by taking the payments instead of the lump sum.

some Madoff shit or a million other things people lost MAJOR money in the recent recession.

He could have been like millions of responsible adults around the world and put that money in some basic shit and watched his paper stack. By 2000 he had made over 48 million dollars from playing baseball he could have easily put that money away.

>He could have been like millions of responsible adults around
>the world and put that money in some basic shit and watched
>his paper stack.

OR he could've lost nearly everything like millions of people "responsible adults" did in the recent recession.

>By 2000 he had made over 48 million dollars
>from playing baseball he could have easily put that money
>away.

lol, you act like he had all out that money just sitting in the bank. After taxes, agent and attorney fees etc he might have had half of that to spend over the course of his 15 year playing career

http://oi31.tinypic.com/rrtq9x.jpg

merely parking it somewhere hasn't worked.

that's why the stock market's in another bubble. there's nowhere else for the 1% to park its money at the moment but there.. so we have inflated asset prices to go along with record margin debt.

8% could be if he'd actually invested with an above-average hedge fund/wealth mgmt (most can't even beat the s&p 500, btw.)

i think bobby b's doing ok.

.

IF he wanted to do that, he coulda invested each million for the 1st 6 years at that *8%* return and pocketed the $1million they gave him every year after that.

it can always get worse.

>it can always get worse.

Shellstradamus!

At least Knicks fans don't necessarily cheer for the Mets?

That's some grade A uppage

https://www.youtube.com/watch?v=6IJCFc_qkHw


"HONEY I'M GOING TO THA BANK. ITS THAT DAY"

https://www.youtube.com/watch?v=MkNE40qk-FE

..can't help but grin about this every year.


*skatin' the rings of saturn*


..and miles to go before i sleep...

http://espn.go.com/mlb/story/_/id/16650867/why-mets-pay-bobby-bonilla-119-million-today-every-july-1-2035

"And now get ready for the real kicker. Gilbert recently sat down with ESPN for a new digital series for FiveThirtyEight, "Contracts," debuting later this summer. He said that Bonilla actually has another deferred deal with the Mets that makes another $12.5 million. It was part of his first deal with the team that ran from 1992 to 1996. The $29 million deal made Bonilla the highest-salaried player in baseball at the time. Part of the deal was to defer some money, which resulted in Bonilla getting $500,000 a year from 2004 through 2023. The Mets shipped Bonilla to the Orioles for the last season and a half of that deal, so they split the fare with Baltimore."

cause 99% of athletes would have said fuck you, pay me my $5.9 mill

www.engadgethd.com - the other stuff i'm looking at

the total salary for a player earning the major league minimum over that time is $2.23 million. So Philly has paid Howard $100 million dollars more over the past 4 1/2 years for worse production than they'd have gotten from a random scrub making minimum salary. Mets paying Bonilla is a bargain by comparison.

https://goo.gl/WA4LRd

https://qt.azureedge.net/resources/authors-images-large/luol-deng.jpg

So that we can better commemorate Bobby Bonilla Day.

circa 1990. Still have the bat too. Just thought I’d share.

https://i.pinimg.com/originals/cf/e3/45/cfe34535cbf7c3d6410177e8cf9a4444.gif

..critics always talk about how athletes piss away millions making horrible financial decisions, but we rarely see the media take orgs to task for the same bullshit.


*skatin' the rings of saturn*


..and miles to go before i sleep...

if they made a 30 for 30 on the biggest schmucks to own a franchise, Wilpon would be front and center.

Came here this morning looking for this lol

It's that time.....

Bobby's pockets are UNCREASED