...DisgruntledMetsFan.com just tweeted something that I had completely forgotten about.
Here’s his tweet:
"Does anyone realize that starting in 2011, the New York Mets will pay Bobby Bonilla $1.2 mil / year for 25 years? What an organization!"
That’s right. Starting July 1, 2011, and on every July 1 until 2035, the Mets will send a check to Bobby Bonilla worth $1,193,248.20.
When the Mets released Bonilla in January of 2000, instead of picking up the $5.9 million owed to him for that year, they agreed to pay him nearly $1.2 million over the course of 25 years. That’s almost $30 million.
Might as well bring him back as a coach somewhere for that much money. Or have him cut the grass at Citi Field.
Or maybe he can play left field.
Eli From Brooklyn: So how true is this and what were the Mets thinking? Well, a fellow, Bernie, wrote this in the comment section on The Ropolitans:
Bernie: It is actually correct, and a horrible deal...for Bonilla. Ahh the power of compounded interest. The way it works, the Mets set aside $6 million in 2000 @ a rate of 12% per year. They are not allowed to withdraw any funds until year 11, in which they can withdraw $1,200,000 per year for 25 years. After the 25 years, and after paying off Bonilla, the Mets will have...drum roll please....$138 million. So they took the $6 million he was supposed to receive and invested it themselves and made $132 million for themselves on it. They also have a similar deal with Bret Saberhagen. Now here comes the problem with this deal and others. Madoff is the one that was guaranteeing them the 12%. So the Mets are now going to be paying the players out of their pockets, with new 2011 dollars, not 2000 compounded dollars, and on top of that, never receiving the $138 million lump sum. Much of the speculated $700 million the Mets lost was not what they lost out of pocket, but what was supposed to be there after this great compounded rate.
Eli From Brooklyn: Duh, I knew that.