Mets paid Bobby Bonilla 1.2 mil today

[daneblazer]

Such a well run team

[packerd_00]

Jesus when did he retire for Christ sake

[Dirty Sanchez]

Such a well run team

and every year on this date until 2035 retired 2001

[JMobile]

Raffle tickets?

[stealthyburrito]

Raffle tickets?

http://thebiglead.com/2015/07/01/bobby-bonilla-mets-contract-payday/

[packerd_00]

and every year on this date until 2035 retired 2001

That's nuts what clown thought up this contract.

[DiggityDaggityDo]

Retired 14 years and still making more than a lot of current MLB players.

[Chi_archie]

I remember a year or two ago the two highest paid Mets in the OF were Jason Bay and Bobby Bonilla

[DiggityDaggityDo]

Notable Mets Salaries This Year

Bobby Bonilla	$1.2M
Matt Harvey	$614,125
Jacob deGrom	$556,875
Zack Wheeler	$546,250
Jeurys Familia	$523,925

[JMobile]

http://thebiglead.com/2015/07/01/bob...ntract-payday/

Well, that deal worked out better for Bobby and his agent.

[Dirty Sanchez]

That's nuts what clown thought up this contract.

One of the greatest blunders/moves in Bonilla's contract history...when most guys are broke or wondering where their cash went, he's just getting started on getting yearly checks....brilliant!

[jjgold]

[Ghenghis Kahn]

gilbert arenas thinks bobby bonilla is getting fukked up the ass with that shitty contract...

[Dirty Sanchez]

gilbert arenas thinks bobby bonilla is getting fukked up the ass with that shitty contract...

Allen Iverson wished he had a contract like BB...dude would be able to at least eat at Taco Bell now

[Roadtrip635]

Still makes more than Russell Wilson

[Ghenghis Kahn]

Still makes more than Russell Wilson

russell wilson wants to be the highest paid qb but is that fake jesus fukk really worth that price?

[packerd_00]

One of the greatest blunders/moves in Bonilla's contract history...when most guys are broke or wondering where their cash went, he's just getting started on getting yearly checks....brilliant!

He must have a good laugh about it with his agent I bet

[nyplayer33]

This is why I don't root for teams n other then occasional betting I don't care v who wins..fans pay for bobby.bonilla lol

[d2bets]

They should get him back in the lineup hitting cleanup. Couldn't do any worse than the current bunch.

[Darkside Magick]

Following the 1999 season, the Mets wanted to buy out the final year of Bonilla's contract. But instead of paying him the $5.9 million he was owed, the two sides agreed to a deferred compensation deal with the Mets paying Bonilla 25 annual payments of $1.2 million starting on July 1, 2011.


On the surface the deal looks laughable for the Mets as the payments will total $29.8 million. However, it is not nearly that simple and the deal was actually a good one for the Mets.


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 took his annual payment and invested it 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 in potential earnings by taking the payments instead of the lump sum.

[manny24]

could they even spill him into a uniform?

heard the guy looked like 250 lbs of chewed bubble gum now

[d2bets]

Following the 1999 season, the Mets wanted to buy out the final year of Bonilla's contract. But instead of paying him the $5.9 million he was owed, the two sides agreed to a deferred compensation deal with the Mets paying Bonilla 25 annual payments of $1.2 million starting on July 1, 2011.


On the surface the deal looks laughable for the Mets as the payments will total $29.8 million. However, it is not nearly that simple and the deal was actually a good one for the Mets.


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 took his annual payment and invested it 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 in potential earnings by taking the payments instead of the lump sum.

Do you know any athlete that would turn $5.9 million into $104.1 million? Or pretty much anyone.

Plus, that analysis seems to completely ignore taxes and other factors.

More important, a better judge would have been how much, in 2000, a single premium annuity would have cost to return $1.2 million for 25 years. I don't have the number but I'd betcha it would have cost over 10 million. Actually, this is kind of how a lot of lotteries work. It's either a lump sum or it's over 25 years. When you choose a lump sum, it's usually about half (and it IS the way to go). But here, the lump sum was only about one-fifth of the total payments! So no, the 30 million paid over 25 years was better in every way imaginable.

[d2bets]

Here's an article on lump sum vs. annuity: http://finance.zacks.com/lottery-ann...-sum-2136.html

For example, if you won a $12 million jackpot in the multistate Mega Millions lottery game, you could take $461,538 a year for 26 years and get the entire $12 million, or accept a lump sum of $7,042,000, equal to 58 percent of $12 million.

So the lottery choice is 58% of the full amount or equal over 26 years.

Bonilla's choice was only 20% of the full amount or equal over 25 years.

58% is a good deal; 20% is not.

Granted, the prevailing interest rate was higher in 2000, but not that much.

[Darkside Magick]

Do you know any athlete that would turn $5.9 million into $104.1 million? Or pretty much anyone.

Plus, that analysis seems to completely ignore taxes and other factors.

More important, a better judge would have been how much, in 2000, a single premium annuity would have cost to return $1.2 million for 25 years. I don't have the number but I'd betcha it would have cost over 10 million. Actually, this is kind of how a lot of lotteries work. It's either a lump sum or it's over 25 years. When you choose a lump sum, it's usually about half (and it IS the way to go). But here, the lump sum was only about one-fifth of the total payments! So no, the 30 million paid over 25 years was better in every way imaginable.

i understand your premise but the Mets brain trust figure this was the way to go. they may have thought that athletes have access to top money managers and getting 8% per year was standard. but hey its the Mets, they let madoff rob them!

[d2bets]

i understand your premise but the Mets brain trust figure this was the way to go. they may have thought that athletes have access to top money managers and getting 8% per year was standard. but hey its the Mets, they let madoff rob them!

Who knows what was behind it. Regardless, for Bonilla it was a GREAT decision.

[oiler]

great deal made by bonilla

[Darkside Magick]

Who knows what was behind it. Regardless, for Bonilla it was a GREAT decision.

well one of the reason was if the Mets invested the $5.9 million at 8% interest in 2000, that money would have grown to more than $14 million before they had to <nobr style="color: rgb(0, 0, 0); font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: 20px;">make a</nobr> single payment to Bonilla. That money would continue to draw interest even while they are <nobr style="color: rgb(0, 0, 0); font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: 20px;">making payments</nobr>.

[Ghenghis Kahn]

Following the 1999 season, the Mets wanted to buy out the final year of Bonilla's contract. But instead of paying him the $5.9 million he was owed, the two sides agreed to a deferred compensation deal with the Mets paying Bonilla 25 annual payments of $1.2 million starting on July 1, 2011.


On the surface the deal looks laughable for the Mets as the payments will total $29.8 million. However, it is not nearly that simple and the deal was actually a good one for the Mets.


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 took his annual payment and invested it 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 in potential earnings by taking the payments instead of the lump sum.

well in that sense, it worked out well for both. i doubt bonilla would've invested any of $5.9 mil.

just watch espn 30/30 "broke". most go broke and ones that invest, they invest in the wrong the things.

[d2bets]

well one of the reason was if the Mets invested the $5.9 million at 8% interest in 2000, that money would have grown to more than $14 million before they had to <nobr style="color: rgb(0, 0, 0); font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: 20px;">make a</nobr> single payment to Bonilla. That money would continue to draw interest even while they are <nobr style="color: rgb(0, 0, 0); font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: 20px;">making payments</nobr>.

Interest? How did investments do between 2000-2008? Not too good.

[TheLock]

LOLMets

[scumbag]

darkside, if billy walter, one of the sharpest gamblers around, has been fleeced on every stock deal he's ever done - how do you think bobby bonnilla would fare?

smart move on bonnilla's part.

[Darkside Magick]

darkside, if billy walter, one of the sharpest gamblers around, has been fleeced on every stock deal he's ever done - how do you think bobby bonnilla would fare?

smart move on bonnilla's part.

anybody who in the know about gambling knows billy walters is a myth more like a persona where he hide behind shady business dealings.

again in a true financiall sense.. it was a bad deal to take the deferred money.

[actiondan]

Lmfao

[klemopixx]

Allen Iverson wished he had a contract like BB...dude would be able to at least eat at Taco Bell now

Iverson has 50 M in trust fund that he can't touch till he's 50. Fact. AI is just chillin for 9 more years, he's got a gig with the Sixers paying him a few bucks to hang around.

[jjgold]

man Harvey screwed

Dead arm and not making big money