Another long-term contract after a half a year.

[HawkandMariner88]

Bobby Bonilla is 63 years old.
He last played in 2001.
His last 3 years combined he hit 14 home runs.

Bobby Bonilla receives $1.19 million every July 1 from the New York Mets due to a deferred contract agreement that spreads a $5.9 million buyout over 25 years with 8% interest.

How the Contract Works
In 2000, the New York Mets wanted to release Bobby Bonilla but still owed him $5.9 million from his contract. Instead of paying the full amount immediately, Bonilla and the Mets agreed to defer the payment until 2011. Under this arrangement, Bonilla receives annual payments of approximately $1.19 million every July 1 from 2011 through 2035, totaling nearly $29.8 million in nominal terms due to the 8% interest applied to the deferred amount.
This structure is a form of deferred compensation, which allows a team to delay paying a player while providing a guaranteed return on the deferred sum. The Mets’ ownership at the time, led by Fred Wilpon, believed their investments with Bernie Madoff would generate returns exceeding the 8% owed to Bonilla, making the deferral financially attractive at the time

Cultural and Financial Significance
The annual payment has become a well-known event in baseball, celebrated as “Bobby Bonilla Day” every July 1. Despite Bonilla last playing for the Mets in 1999 and retiring from MLB in 2001, the deferred contract ensures he continues to earn a substantial income decades after his playing career ended.

Bonilla also has a second deferred contract with the Baltimore Orioles, paying him $500,000 annually from 2004 through 2028

. These arrangements highlight how deferred payments are used in MLB for payroll flexibility, cash flow management, and long-term financial planning.

This is why Finance 101 should be mandatory in High School. They teach complete worthless nonsense like Home Ec. Auto shop and PE but Millions of kids go out in the world with no concept of Finance leading to shitty credit scores and idiot financial decisions like student loans and thinking the Bonilla arrangement is a bad deal for the Mets.

Auto Shop is bad? So learning how to work on cars is not an essential life skill?

[D-train]

Bobby Bonilla is 63 years old.
He last played in 2001.
His last 3 years combined he hit 14 home runs.

This is why Finance 101 should be mandatory in High School. They teach complete worthless nonsense like Home Ec. Auto shop and PE but Millions of kids go out in the world with no concept of Finance leading to shitty credit scores and idiot financial decisions like student loans and thinking the Bonilla arrangement is a bad deal for the Mets.

Auto Shop is bad? So learning how to work on cars is not an essential life skill?

If you know finance you don't need to work on cars. Never spent a second working on a car in my life. If you enjoy that type of thing, good for you.

[Donn Beach]

I don't understand this at all. Even if he is a perennial all-star and makes big arbitration numbers you are still only going to pay him about 30-35 Million or so by the time his rookie contract ist up. So best case scenario they essentially paying him an extra 70-75 Million for two years of control. Worst case scenario he flames out and they owe 105 Million to a guy they could have DFA'd for nothing.

How are you figuring that? Skubal just got $32 mil in arbitration for this season. Whats the inflation rate on that kind of a reward over the next few seasons.

[Captain 97]

I don't understand this at all. Even if he is a perennial all-star and makes big arbitration numbers you are still only going to pay him about 30-35 Million or so by the time his rookie contract ist up. So best case scenario they essentially paying him an extra 70-75 Million for two years of control. Worst case scenario he flames out and they owe 105 Million to a guy they could have DFA'd for nothing.

How are you figuring that? Skubal just got $32 mil in arbitration for this season. Whats the inflation rate on that kind of a reward over the next few seasons.

Skubal's total career earnings for his 6 years with the Tigers will be 46.83 Million at the end of this season. That's for a 2 time cy young award winner. Dylan Cease was the Starter for the All-Star Game this season. This is his first year on a new contract. His total on his rookie contract including arbitration was 29.93 Million. That's for a guy with a couple of top 5 Cy Young finishes.

[Donn Beach]

OK, i think with contract inflation, a perennial All Star is doing better than $30 mil over the next six years.

Its an actuarial type exercise. Pretty straight forward with the data they have now. Its a risk but a calculated one. Clubs arent trying to lose money. For me this is right in the wheelhouse of the typical franchise these days, pure bean counting.

[D-train]

OK, i think with contract inflation, a perennial All Star is doing better than $30 mil over the next six years.

Its an actuarial type exercise. Pretty straight forward with the data they have now. Its a risk but a calculated one. Clubs arent trying to lose money. For me this is right in the wheelhouse of the typical franchise these days, pure bean counting

Hey great job for spelling lose correctly. Can't believe how many spell it loose! lol Credit where credit is due!

[Donn Beach]

lol...i might be bad but im not that bad!

I was going to add, if you look at whos doing these contracts. I mean i think people want to lump this in with the Yankees giving Arod a $250 mil extension. This isnt drunken sailor spending by owners with more money than they know what to do with. This is the opposite. Mariners, Pirates, Reds, those are the cheapest clubs in baseball. Theyve calcuated this stuff a dozen different ways. Its about saving money, not spending it