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

Yappi

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.
Click to expand...

www.espn.com

Here's why the Mets still pay Bobby Bonilla $1.19 million today ... and every July 1 through 2035

Bobby Bo hasn't called Queens home since 1999, but today he'll receive a hefty check from his former employer. Here's what you need to know about Bonilla's unusual annual payday.
www.espn.com www.espn.com
 
 
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.
 
Red14 said:
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.
Click to expand...
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.
 
El Indio said:
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.
Click to expand...
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.
 
Red14 said:
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.
Click to expand...
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.
 
El Indio said:
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.
Click to expand...
He hasn’t gotten a raise in 10 years. So financial literacy isn’t his strong suit.
 
El Indio said:
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.
Click to expand...
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. .......
 
Arrogate said:
Every year somebody ends up doing the math on this site. I believe EP did it last year
Click to expand...
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.
 
Last edited:
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.
 
SMARTY22 said:
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.
Click to expand...
Pretty sure Griffey’s deal runs until 2025....Arroyo’s might be done this year, Id have to check.
 
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 ...
 
Red14 said:
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.
Click to expand...
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.
 
Indiandad said:
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.
Click to expand...
Yes, and it's from 2010- 2035 / 25 years. Either way he wins...
 
Indiandad said:
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.
Click to expand...

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.
 
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.
 
wolves82 said:
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.
Click to expand...
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.
 

Attachments

  • C953F0C4-90F5-453E-A9B7-47AE8B6FB960.jpeg
    C953F0C4-90F5-453E-A9B7-47AE8B6FB960.jpeg
    322.3 KB · Views: 22
Last edited:
eastside_purple said:
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.
Click to expand...
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.
 
eastside_purple said:
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.
Click to expand...
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.
 
You must log in or register to reply here.
Top