It's Bobby Bonilla Day! Why Mets pay him $1.19 million today and every July 1

Yappi

Go Buckeyes
The calendar has turned to July 1, and that means one thing: It's time for Mets fans everywhere to wish each other a Happy Bobby Bonilla Day! Why? On Wednesday, 57-year-old Bobby Bonilla will collect a check for $1,193,248.20 from the New York Mets, as he has and will every July 1 from 2011 through 2035.

Because of baseball's salary structure, Bonilla's annual payday is often more than some of the game's current stars in a given year. Thanks to the shortened season and prorated salaries for players in 2020, that list has grown even longer.
 

Red14

Well-known member
I love stories like this. The media gets their jollies off it every year. It's a contract that the Mets and Bonilla agreed upon years ago. The Mets were cash strapped at the time and could not give him all his money up front, so they decided on this agreement. No really big deal. I guess you could say it isn't in Bonilla's best interest because if he could have got that money back in his playing days and invested it, it would be worth alot more than the $1.19 mill today, but it's money.
 

El Indio

Well-known member
I love stories like this. The media gets their jollies off it every year. It's a contract that the Mets and Bonilla agreed upon years ago. The Mets were cash strapped at the time and could not give him all his money up front, so they decided on this agreement. No really big deal. I guess you could say it isn't in Bonilla's best interest because if he could have got that money back in his playing days and invested it, it would be worth alot more than the $1.19 mill today, but it's money.
What? Instead of getting around 6 million that year he is getting 1.9 million for 25 years! I'd say he did well. Geez! What are you smoking.
Plus:
• Bobby Bonilla (again): A second deferred-contract plan with the Mets and Orioles pays him $500,000 a year for 25 years. Those payments began in 2004.
He's getting .5 mill for 25 years too.

Can't you read, or do you just shoot off at the mouth without verifying what you are talking about?
Just asking.
 

Red14

Well-known member
What? Instead of getting around 6 million that year he is getting 1.9 million for 25 years! I'd say he did well. Geez! What are you smoking.
Plus:
• Bobby Bonilla (again): A second deferred-contract plan with the Mets and Orioles pays him $500,000 a year for 25 years. Those payments began in 2004.
He's getting .5 mill for 25 years too.

Can't you read, or do you just shoot off at the mouth without verifying what you are talking about?
Just asking.
Ok, and pardon my math. So I looked and the Mets owed Bonilla 5.9 mill when they released him and they cooked up the 1.9 mill payment for 25 years from 2011 to 2035. So if you take 5.9 mill in 1999 and compound and average interest of 8% return from 1999 to 2035, that is pushing $90,000,000. My point is unless Bonilla was planning on spending it every year, he could do better with the initial 5.9 mill in 1999. Just verifying and shooting at the same time buddy.
 

El Indio

Well-known member
Ok, and pardon my math. So I looked and the Mets owed Bonilla 5.9 mill when they released him and they cooked up the 1.9 mill payment for 25 years from 2011 to 2035. So if you take 5.9 mill in 1999 and compound and average interest of 8% return from 1999 to 2035, that is pushing $90,000,000. My point is unless Bonilla was planning on spending it every year, he could do better with the initial 5.9 mill in 1999. Just verifying and shooting at the same time buddy.
I'm not sure what I'm tickled with more, the fact that you think that he would have invested that much money (6 Mil) in 1999 or the fact that he knew what he was doing and get two mill for 25 years and investing some of that when he first started collecting. Again, shooting. Not verification.
 

eastside_purple

Well-known member
What? Instead of getting around 6 million that year he is getting 1.9 million for 25 years! I'd say he did well. Geez! What are you smoking.
Plus:
• Bobby Bonilla (again): A second deferred-contract plan with the Mets and Orioles pays him $500,000 a year for 25 years. Those payments began in 2004.
He's getting .5 mill for 25 years too.

Can't you read, or do you just shoot off at the mouth without verifying what you are talking about?
Just asking.
He hasn’t gotten a raise in 10 years. So financial literacy isn’t his strong suit.
 

thavoice

Well-known member
What? Instead of getting around 6 million that year he is getting 1.9 million for 25 years! I'd say he did well. Geez! What are you smoking.
Plus:
• Bobby Bonilla (again): A second deferred-contract plan with the Mets and Orioles pays him $500,000 a year for 25 years. Those payments began in 2004.
He's getting .5 mill for 25 years too.

Can't you read, or do you just shoot off at the mouth without verifying what you are talking about?
Just asking.
Evey year this topic comes up an every year there is so one who says that bonilla got the short end of the stick. As if he would have invested every red cent from said contract and invested it perfectly. .......
 

eastside_purple

Well-known member
Every year somebody ends up doing the math on this site. I believe EP did it last year
Yeah, he obviously didn’t need the money in 2000 and this provided him a hedge against a downturn in the market.

At 8% compounded interest every year, he comes out slightly behind; but anything below that he comes out well ahead of taking the lump sum.

Pretty smart on his end and it helped the Mets out as well. Especially when you consider he avoided 2009 and the temptation to do something rash.
 
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SMARTY22

Well-known member
Reds paid Griffey Jr 3.5 million today and I think around 1.5 million to Arroyo. Saw an article that said with prorated Salaries this yr Reds will pay Jr more this yr than all but 5 players on this yrs roster. A contract is something both parties agreed on so both sides just meeting the terms of the agreement they reached.
 

eastside_purple

Well-known member
Reds paid Griffey Jr 3.5 million today and I think around 1.5 million to Arroyo. Saw an article that said with prorated Salaries this yr Reds will pay Jr more this yr than all but 5 players on this yrs roster. A contract is something both parties agreed on so both sides just meeting the terms of the agreement they reached.
Pretty sure Griffey’s deal runs until 2025....Arroyo’s might be done this year, Id have to check.
 

thavoice

Well-known member
If someone gave me, and most folksz he option of getting 6million today, or 1.2 million with 8point interest for 25 year ....I'm taking the latter ...
 

Indiandad

Well-known member
Ok, and pardon my math. So I looked and the Mets owed Bonilla 5.9 mill when they released him and they cooked up the 1.9 mill payment for 25 years from 2011 to 2035. So if you take 5.9 mill in 1999 and compound and average interest of 8% return from 1999 to 2035, that is pushing $90,000,000. My point is unless Bonilla was planning on spending it every year, he could do better with the initial 5.9 mill in 1999. Just verifying and shooting at the same time buddy.
His contract is for 25 years, not 36 years.

At 8% compounded annually for 25 years it is $41M.

If he takes the initial 1.9M and invest it as well as the 1.9M each year compounded annually at 8% it is $163M.

Of course this does not take into consideration taxes, broker fees and commissions or any urges to spend the money.
 

Red14

Well-known member
His contract is for 25 years, not 36 years.

At 8% compounded annually for 25 years it is $41M.

If he takes the initial 1.9M and invest it as well as the 1.9M each year compounded annually at 8% it is $163M.

Of course this does not take into consideration taxes, broker fees and commissions or any urges to spend the money.
Yes, and it's from 2010- 2035 / 25 years. Either way he wins...
 

eastside_purple

Well-known member
His contract is for 25 years, not 36 years.

At 8% compounded annually for 25 years it is $41M.

If he takes the initial 1.9M and invest it as well as the 1.9M each year compounded annually at 8% it is $163M.

Of course this does not take into consideration taxes, broker fees and commissions or any urges to spend the money.
It’s reasonable to look at the future value of the lump sum payment in 2035, when the contract is up. Ignoring taxes, etc, $5.9m compounded at 8% annually is ~$90m.

Conversely, $1.19m invested annually starting 2010 and compounded at 8% annually is ~$87m.

So, like I said, assuming 8% interest it’s pretty much a wash, but it’s a big win as a hedge against a downturn, as anything under 8% is a win for the $1.19m payment option.
 

wolves82

Well-known member
Anybody signing up for the Red14 financial planning services? LOL

If you assume 100% of the $5.9M would be invested, not touched, and compounded annually, you also have to assume the $1.2M each year would be invested, not touched and compounded annually. That is the apples to apples comparison. Bonilla won huge in this deal.

assume both get 8% annually

--------- all up front----- get 1.2M annual
Year 1-- $5.9 M -- $1.2M
Year 2-- $6.37M -- $2.49M
Year 3-- $6.88M -- $3.89M
Year 4-- $7.43M -- $5.40M
Year 5-- $8.02M -- $7.03M
Year 6-- $8.67M -- $8.79M

So by Year 6 Bonilla is ahead, and it catapults from here, because you add 1.2M of new principal each year. Not even close Red14. Nice try though.
 

eastside_purple

Well-known member
Anybody signing up for the Red14 financial planning services? LOL

If you assume 100% of the $5.9M would be invested, not touched, and compounded annually, you also have to assume the $1.2M each year would be invested, not touched and compounded annually. That is the apples to apples comparison. Bonilla won huge in this deal.

assume both get 8% annually

--------- all up front----- get 1.2M annual
Year 1-- $5.9 M -- $1.2M
Year 2-- $6.37M -- $2.49M
Year 3-- $6.88M -- $3.89M
Year 4-- $7.43M -- $5.40M
Year 5-- $8.02M -- $7.03M
Year 6-- $8.67M -- $8.79M

So by Year 6 Bonilla is ahead, and it catapults from here, because you add 1.2M of new principal each year. Not even close Red14. Nice try though.
Except he would have received the $5.9m in 2000 and his $1.2m didn’t start until 2011, so he never really catches up at a constant 8% compound interest....lump sum leaves him with $87m by 2035 and the Installments would leave him at roughly the same $87m by 2035 (when the installments end). So it’s a wash at 8% constant compounded interest, but since the market is never consistent taking the lump sum protects him from a down market and we had a big one in 2009.

Now Turpin can make fun of me for doing the math on it again.
 

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Arrogate

Well-known member
Except he would have received the $5.9m in 2000 and his $1.2m didn’t start until 2011, so he never really catches up at a constant 8% compound interest....lump sum leaves him with $87m by 2035 and the Installments would leave him at roughly the same $87m by 2035 (when the installments end). So it’s a wash at 8% constant compounded interest, but since the market is never consistent taking the lump sum protects him from a down market and we had a big one in 2009.

Now Turpin can make fun of me for doing the math on it again.
No I appreciate it. I plan on winning the lottery twice and am not sure what to do. Well first I need to play it.
 

wolves82

Well-known member
Except he would have received the $5.9m in 2000 and his $1.2m didn’t start until 2011, so he never really catches up at a constant 8% compound interest....lump sum leaves him with $87m by 2035 and the Installments would leave him at roughly the same $87m by 2035 (when the installments end). So it’s a wash at 8% constant compounded interest, but since the market is never consistent taking the lump sum protects him from a down market and we had a big one in 2009.

Now Turpin can make fun of me for doing the math on it again.
Ah thanks. Did not realize the delayed start to the 1.2 annually. It didn't make sense that the Mets could be that stupid. Except it's the Mets.
 
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