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The Bobby Bonilla Contract

Bobby Bonilla hasn't played baseball in well over a decade yet every July the New York Mets pay him $1.2 million and will continue to do so until 2035. As part of a second deal that is split between the Mets and Orioles, Bonilla receivers another few hundred thousand dollars each year and will continue to receive that until 2023. All in all, Bobby's agent put together a pretty sweet pension for him.


Because today is all about Bobby Bonilla .A man who last played 5,381 days ago owns this day. Not just this July 1, but every July 1 through 2035. It's the day when the New York Mets pay him $1,193,248.20.

So with the water cooler and Twitter buzzing about the Bonilla deal, here's your primer.



The Mets owed Bonilla $5.9 million for the 2000 season and no longer wanted him. So the club negotiated with Gilbert to attach an 8 percent annual interest rate to that money. With the clock starting in 2000, that adds up to $29.8 million. The first installment of the payout came on July 1, 2011, and the Mets will pay their sixth installment on Friday.

Why did the Mets do the deal?The Mets have never really talked about the deal, but it is well known that their owners, the Wilpons, had many accounts with investor Bernie Madoff. Madoff was returning 12 to 15 percent a year in what we now know were fictional returns. So deferring deals wasn't a problem because the payout would occur years later and the interest rate would be lower than the money they were (fictionally) getting back from Madoff. To see the deal as the Mets would have seen it, let's say the Wilpons put $5.9 million into a Madoff account in 2000 and got a conservative (by Madoff standards) 10 percent annual return. By 2011, when they would have to pay Bonilla for the first time, they would have already grown their pot to $16.83 million. Even with paying off Bonilla every year, they would wind up with a $49 million profit on the deal. Of course, the Madoff returns weren't real, which complicates this hindsight.

The other way to think of it is that the Mets didn't have to pay Bonilla his $5.9 million in 2000 and could use it on other free agents. Sure enough, the Mets acquired Mike Hampton from the Astros right before they dumped Bonilla. Hampton's cost was conveniently $5.75 million, and his 15-10 record was good enough to help get the Mets to the World Series that year for the first time since 1986.


http://www.espn.com/mlb/story/_/id/16650867/why-mets-pay-bobby-bonilla-119-million-today-every-july-1-2035
lol not sure this needed its own thread. This contract is pretty famous.
Originally posted by Niners99:
lol not sure this needed its own thread. This contract is pretty famous.

Dis
Originally posted by Niners99:
lol not sure this needed its own thread. This contract is pretty famous.

Every thread topic on Other Sports is about something famous, though.
Originally posted by StOnEy333:
Originally posted by Niners99:
lol not sure this needed its own thread. This contract is pretty famous.

Every thread topic on Other Sports is about something famous, though.

It could have went into the MLB thread though.
I remember this. Homie played the system and got paid. Good on his lawyer.
The one person who benefited from Madoff's scam.
Steve Young's 43 year contract was neater.
Originally posted by SoCold:
Steve Young's 43 year contract was neater.

Holy cow that contract would have been crazy had the USFL not folded/gone bankrupt.

http://www.cbssports.com/nfl/news/flashback-steve-youngs-43-year-40-million-usfl-contract/
Originally posted by SoCold:
Steve Young's 43 year contract was neater.

It folded with the USFL. Young said for years after people heckled him about getting that kind of money, and after a while he gave up trying to tell them it was voided.

Originally posted by Niners99:
Originally posted by SoCold:
Steve Young's 43 year contract was neater.

It folded with the USFL. Young said for years after people heckled him about getting that kind of money, and after a while he gave up trying to tell them it was voided.

yeah, and?
Originally posted by SoCold:
Originally posted by Niners99:
Originally posted by SoCold:
Steve Young's 43 year contract was neater.

It folded with the USFL. Young said for years after people heckled him about getting that kind of money, and after a while he gave up trying to tell them it was voided.

yeah, and?

He means it wasn't neater after all.
Originally posted by Rubberneck36:
Originally posted by SoCold:
Originally posted by Niners99:
Originally posted by SoCold:
Steve Young's 43 year contract was neater.

It folded with the USFL. Young said for years after people heckled him about getting that kind of money, and after a while he gave up trying to tell them it was voided.

yeah, and?

He means it wasn't neater after all.

sure it was

https://sports.yahoo.com/blogs/nfl-shutdown-corner/the-crazy-story-behind-steve-young-s-crazy-usfl-contract-134553866.html

that's a really neat story
Originally posted by Rubberneck36:
Originally posted by SoCold:
Originally posted by Niners99:
Originally posted by SoCold:
Steve Young's 43 year contract was neater.

It folded with the USFL. Young said for years after people heckled him about getting that kind of money, and after a while he gave up trying to tell them it was voided.

yeah, and?

He means it wasn't neater after all.

I just wrote up a 58 year/$2 billion deal for me to play both LB and QB for the 49ers. Much neater. Only problem is its void.
Originally posted by Niners99:
Originally posted by Rubberneck36:
Originally posted by SoCold:
Originally posted by Niners99:
Originally posted by SoCold:
Steve Young's 43 year contract was neater.

It folded with the USFL. Young said for years after people heckled him about getting that kind of money, and after a while he gave up trying to tell them it was voided.

yeah, and?

He means it wasn't neater after all.

I just wrote up a 58 year/$2 billion deal for me to play both LB and QB for the 49ers. Much neater. Only problem is its void.

At the time he singed the contract it was a valid deal. The next year he had the option to take $1m in cash or pay $900k for the annuity. Just because the league folded and voided the deal doesn't make it any less neat, imo. It was the most unheard of contract of it's time, maybe all time.
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