“So, to recap, by renegotiating Bobby Bonilla’s contract in 2000 to pay him $1.19 million annually from 2011 to 2035, the Mets:
1) Achieved the financial flexibility necessary to acquire players that put them in the World Series that season.
2) Got rid of a massive headache.
3) Earned a draft pick they used on seven-time All-Star David Wright.
4) Made a reasonably shrewd financial decision.
5) Became an annual laughingstock.”
Source: USA Today
Berg includes a quote from Business Insider doing the math work on the financial decision, away from the Madoff angle.
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http://hardballtalk.nbcsports.com/2015/07/01/bobby-bonillas-isnt-the-only-deferred-money-deal-in-the-game-and-isnt-even-the-worst/?ocid=Yahoo&partner=ya5nbcs
Thanks for the link.
That Bruce Sutter deal is either magical or horrific, depending on if you’re a relative of Sutter’s. And the article didn’t even mention the deferred money in the Scherzer deal.
It’s like he won the powerball.
If the Mets or baseball just termed it as a “retirement plan” (or made up some name for it), people wouldn’t get all riled up over this.
People seem to understand defined benefit plans and 401k, but they don’t seem to understand deferred money? It’s basically the same thing.
Bonilla made a “payment” of 5.9 million in this “plan”. The “plan” is invested in the financial markets and grows. And after 10 years, he can start “withdrawing” 1.2 million for 25 years.
Name,
Intellectually you are 100% correct. The problem is that Met fans are reacting to the name Bobby Bonilla. That’s where the displeasure comes from.