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Os still paying Bobby Bonilla $250,000 per season until 2023

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8 hours ago, oriole said:

You should’ve learned to hit home runs 

Yeah we shoulda. You know I did in fact learn. But they kept moving those fences further and further back. And then by the time I hit a certain age, they were just too far. But in spite of it I kept playing even after I turned 6 and had to play on the ball field instead of my back yard. But man that last summer, in 1968, everyone on Westborne drive knew who I was. Every time I hit a blast the sounds would thunder down from all around. 
 

I think of it fondly very often. In my head, the crowd cheering my name. And then of course I chuckle because they were just yelling hey kid shut up and go inside already. 😎

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KEY POINTS
  • Former Major League Baseball slugger Bobby Bonilla is paid roughly $1 million by the New York Mets every July 1 until 2035.
  • Bonilla also gets a second payment of $500,000, divided between the Mets and Baltimore Orioles.


 

Quote

Including this July 1 payout, the Mets have so far have paid Bonilla $10,739,232 and the club still owes him roughly $19 million. Bonilla also gets a second payment of $500,000, which is divided between the Mets and Baltimore Orioles. That agreement ends in 2023, and is valued at $12.5 million, according to ESPN.

https://www.cnbc.com/2020/07/01/mets-pay-annual-1-million-to-former-mlb-slugger-bobby-bonilla.html

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2 minutes ago, VaBird1 said:

That was quite a lineup.

Yeah, It was and we got unlucky not to win a WS with it.

 

Thinking back Bonilla (mostly) and his agent were masterful in ensuring he’d have an income most of the rest of his life. $1 million until 2035 by the Mets was masterful. Hard to believe the Mets would agree to it. 
 

Getting paid $34 million and for 34 years after his retirement. I know deferred money is more common now. But, Bobby was ahead of the curve. Also, $1 million was more in 2001 than it is in today’s game. The other $500,000 partially from us until 2023 was also an extra 24 years of income.

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On 7/1/2020 at 8:54 AM, Aglets said:

Only 17 years to go!

We are supposed to defer $6M every year for him through 2022 (a total of $42M) which then gets paid out to him in small chunks through 2037.

Wonder how the 2020 salary gets all divided up assuming he plays for 60 days.

In this case I will use "they" instead of "we" when referencing the Orioles. I was against the signing of Davis at any amount and it isn't my money so I don't have anything to do with it. 

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On 7/1/2020 at 10:38 AM, Frobby said:

Very good discussion of the economics of this deal in this old ESPN article.  It’s important to remember that interest rates were much higher in 2000 than they are today.   Basically, he bought a bond at 8% and now interest rates on similar bonds are at like 3%.    So, things worked out in his favor if you look at it that way.   But that wasn’t the agent’s doing.    
https://www.espn.com/mlb/story/_/id/16650867/why-mets-pay-bobby-bonilla-119-million-today-every-july-1-2035

I think the deferred money happening today is a flat rate without interest, at least that's what I've gotten from the contracts that the Nationals have given out.  Teams learned from the Madoff gaffe here.  

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On 7/1/2020 at 10:18 AM, DrungoHazewood said:

Bonilla would have been better off if he'd taken the money up front and invested it in a relatively safe place.  But if he knew that was beyond his willpower and he would have burned through it years ago, I guess good on him for being honest.

This exactly.

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7 hours ago, Catch 8 said:

This exactly.

Thank you.  Although Frobby did have a good point in the article he linked.  Bonilla is getting the equivalent of an 8% return, which is not too far off the historical rate of the stock market.  So he would have been quite lucky to have gotten a lot better return than what he's receiving now.

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46 minutes ago, DrungoHazewood said:

Thank you.  Although Frobby did have a good point in the article he linked.  Bonilla is getting the equivalent of an 8% return, which is not too far off the historical rate of the stock market.  So he would have been quite lucky to have gotten a lot better return than what he's receiving now.

The 30 year treasury was around 6% in Feb. 2000, so we can consider that the risk free rate. It looks like high quality long term corporate bonds were around 8%, that’s probably more comparable. So this was probably pretty close to a fair deal. 

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On 7/1/2020 at 10:18 AM, DrungoHazewood said:

Bonilla would have been better off if he'd taken the money up front and invested it in a relatively safe place.  But if he knew that was beyond his willpower and he would have burned through it years ago, I guess good on him for being honest.

He's getting 8% regardless of what the market is doing.  That's not too bad.  

  • Upvote 2

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On 7/4/2020 at 8:17 AM, makoman said:

The 30 year treasury was around 6% in Feb. 2000, so we can consider that the risk free rate. It looks like high quality long term corporate bonds were around 8%, that’s probably more comparable. So this was probably pretty close to a fair deal. 

The key point in this whole saga is Bernie Madoff. The Wilpons supposedly were getting 12% to 18% on the money they had given to Madoff. This Bonilla contract is even crazier to believe when you realize that the original 5.9 million dollars that was part of the 500 million that the Wilpon's eventual lost

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On 7/4/2020 at 8:17 AM, makoman said:

The 30 year treasury was around 6% in Feb. 2000, so we can consider that the risk free rate. It looks like high quality long term corporate bonds were around 8%, that’s probably more comparable. So this was probably pretty close to a fair deal. 

Corporate Bonds are usually a safe investment, but not always. Bonilla got a great deal with little chance of not getting paid all his money promised.

GM's proposal would give bondholders next to nothing

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