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

[weams]

What a way to plan for retirement. Huzzah. Bobby Bo. Push Cal. Up those steps. 

[weams]

 

[Sports Guy]

We will be having Chris Davis day for a while as well.  

[Aglets]

2 minutes ago, Sports Guy said:

We will be having Chris Davis day for a while as well.  

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.

[SteveA]

12 minutes ago, 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.

"Small chunks".... each of which is about the sum total of what I have earned in my entire 32 year career in a tech field.

[Aglets]

Totally fair, I could have used a different adjective.  The annual "Angelos dividends" will be more than Bonilla is making as well. 

[oriole]

36 minutes ago, SteveA said:

"Small chunks".... each of which is about the sum total of what I have earned in my entire 32 year career in a tech field.

You should’ve learned to hit home runs 

[DrungoHazewood]

1 hour ago, weams said:

What a way to plan for retirement. Huzzah. Bobby Bo. Push Cal. Up those steps. 

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.

[Frobby]

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

[backwardsk]

The deal evens out in 2035.  His 5.9M invested in 2000 equals the sum of his payments plus interest.  What I didn’t know is that he gets an additional $500k through 2029.

https://www.google.com/amp/s/www.espn.com/mlb/story/_/id/29388441/bobby-bonilla-day-why-mets-pay-119-million-today-every-july-1%3fplatform=amp

[Beef Supreme]

Bonilla's total contract value would have been lower had he taken all the money during his career. Deferred payments increased the contract's total value.

[BohKnowsBmore]

1 hour ago, Beef Supreme said:

Bonilla's total contract value would have been lower had he taken all the money during his career. Deferred payments increased the contract's total value.

Yea, the thing that makes Bonilla's deal notable (other than the total timeline) is the discount rate/return used to calculate the deferrals

[Legend_Of_Joey]

4 hours ago, oriole said:

You should’ve learned to hit home runs 

I learned to strike out. Doesn’t that help now?

[weams]

https://www.nydailynews.com/sports/baseball/mets/ny-bobby-bonilla-day-2020-20200701-asbyibefpbgl3jvbzu7ljq77be-story.html

[oriole]

3 hours ago, Legend_Of_Joey said:

I learned to strike out. Doesn’t that help now?

Mark Reynolds made a pretty decent career out of it