Happy Bobby Bonilla Day

[Firemans4Horn 18034]

[Zepol87 9185]

Every year this happens and it is still so badass

Edited July 1, 2020 by Zepol87

[WBT 20561]

Happy sportswriters don't understand the time value of money day

[Wally Fairway 5539]

3 hours ago, WBT said:

Happy sportswriters don't understand the time value of money day

They are sportswriters, I'll cut them a break.

And hey, it isn't the worst financial decision Fred Wilpon ever made
https://sportsarefromvenus.com/2019/09/19/the-history-of-bernie-madoffs-ties-to-the-new-york-mets/

[UTexasFight 9428]

July 1, 2036 is going to be a sad, sad day.

[Hate 20106]

I wonder if he’s already and to call JG Wentworth to settle or not.

[Pato del Muerto 52485]

Every year I forget how long this goes on and think it must be about finished. Then I see it’s 2035 and laugh all over again. 

[cochamps 1879]

The New York Mess.  Er, Mets.

[WBT 20561]

2 hours ago, Hate said:

I wonder if he’s already and to call JG Wentworth to settle or not.

877-CASH-NOW

[Revolution512 1487]

It’s funny that there’s others on payment plans like this. Bruce Sutter has been on one since the mid-80s I think.

[BehoId, The Underminer! 11669]

43 minutes ago, Revolution512 said:

It’s funny that there’s others on payment plans like this. Bruce Sutter has been on one since the mid-80s I think.

holy shit.  his is worse than bonilla's.  12.3% interest. over a million a year since Vanilla Ice was topping charts.

https://www.ledger-enquirer.com/sports/mlb/atlanta-braves/article213840114.html

 

 

[FondrenRoad 4378]

15 minutes ago, BehoId, The Underminer! said:

holy shit.  his is worse than bonilla's.  12.3% interest. over a million a year since Vanilla Ice was topping charts.

https://www.ledger-enquirer.com/sports/mlb/atlanta-braves/article213840114.html

 

 

Also, he has been getting interest only payments the whole time. Will get a 9.1 million dollar check at the end. Crazy. 

[NeverMarryAStripper 21872]

So Sutter is sitting on the beach earning (almost) 20%

[Hate 20106]

[tx 3 putt 76868]

the mets invested a chunk of money with bernie madoff to cover all over bobby bo's payment

buy low, sell high !

[PittsburghTiger 6175]

It's amazingly bad on the Mets end of things but damn, that was some foresight there by whomever negotiated that deal for Bonilla. More power to him.

[tx 3 putt 76868]

1 hour ago, FondrenRoad said:

Also, he has been getting interest only payments the whole time. Will get a 9.1 million dollar check at the end. Crazy. 

[The Dog 44017]

Never gets old.

[ss13 1832]

Here’s Camden Chat’s write-up after Crush Davis’ monster deal, it has some crazy deferrals too. The whole thing is great to read now, but the bolded line kills it. 

Quote

The first reports about the Orioles new contract with Chris Davis reported it as a seven year contract worth $161 million dollars. That probably conjured an idea in your mind that the Orioles would be paying Davis $23 million per year for the seven years of the contract. That's a lot of money. It turns out that's not what they will be doing, because ESPN's Buster Olney reported on Saturday afternoon that the contract has deferred a significant amount of its value beyond Davis's playing career.

According to Olney, the Orioles have deferred a total of $42 million dollars of the contract. What that actually means is that the O's will pay Davis $17 million per year for the seven contracted years. Each year, $6 million is deferred. So instead of the $161 million over seven years, the fact is that over the next seven years the O's will be paying Davis $119 million.

The money will come due eventually, with Davis structured to receive a $3.5 million payment each year from 2023-32, with an additional $1.4 million coming each year from 2033-37. That is an interest-free deferral, which is actually a pretty big victory for the Orioles. While it may invite comparisons to the infamous Bobby Bonilla Mets situation, there's not a whole lot of actual similarity. Yes, the Orioles will be paying Davis for a long time, but I think it's pretty safe that he'll do more for the Orioles than Bonilla did for the Mets on that contract.

What does it matter that the O's will owe Davis $3.5 million in 2024? Who cares? So they won't be able to sign the 2024 version of Everth Cabrera. They might not have the payroll to cover the 2028 version of Brian Matusz. There will be an impact, but we can only hope that whoever is in charge of the O's at that time - and the owner probably won't even still be Peter Angelos, who's 86 years old - is not going to be hampered by any of that. They should not be. It's a lot of money to you or I, but it's not a lot of money to a baseball team a decade from now, especially when weighed against the benefit it might provide right now.

In the meantime, what it means is that the Orioles will have an extra $6 million to play with each year for the life of the contract. That's most significant over the next three years because that's when the existing Orioles core will still be here. That's money they can spend to supplement that core.

Adding $17 million for Davis to the 2016 payroll puts the Orioles at an estimated $134 million, which is just about $10 million more than where they ended last season. That could change slightly depending on the outcome of the salary arbitration for Zach Britton and Brian Matusz.

Maybe they'll put some of it to use in the rest of this offseason by doing something crazy like signing Yoenis Cespedes for a year. Maybe they'll hold it back to pay all of the extra draft picks they'll have this year compared to last year, or they'll put it aside in order to take on salary midseason. There are a number of possibilities, any of which will be helpful to the Orioles of the present and near future. That could even be money that goes into making sure that the Orioles can keep Manny Machado and Adam Jones beyond 2018.

The amount of the deferred money also goes a long way towards explaining how the $154 million from a month ago turned into $161 million. Though some hot take machines have fired up their mockery about how the Orioles bid against themselves - a fair criticism on some level - the $42 million being deferred really means the Orioles will be paying the Orioles much less than once discussed over the seven playing years of the contract.

When you're talking about $17 million per year, you're really saying, OK, Davis needs two be a two win player per year to earn this. He'll bank some surplus in the years before he's expected to really decline, and even once he does, as long as his decline isn't a complete plummet off of a cliff, it still won't be too bad of a deal.

And in the meantime, the Eutaw Street home run champion stays with the Orioles. Davis has hit 161 home runs as an Oriole. How high on the franchise home run list do you think he can climb with seven more years to hit dingers? I'm looking forward to finding out.

 

[WBT 20561]

Yeah but the Chris Davis deferral was just so Scott Boras could claim a higher total value on the contract.  Everyone reported it as a $161 million deal but it would have been a much lower total if not for the deferrals.

[ss13 1832]

Jesus, I apologize you couldn’t find the entertainment in their initial defense of the deal. My bad, Astro fan. 

Quote

When you're talking about $17 million per year, you're really saying, OK, Davis needs two be a two win player per year to earn this. He'll bank some surplus in the years before he's expected to really decline, and even once he does, as long as his decline isn't a complete plummet off of a cliff, it still won't be too bad of a deal.

And in the meantime, the Eutaw Street home run champion stays with the Orioles. Davis has hit 161 home runs as an Oriole. How high on the franchise home run list do you think he can climb with seven more years to hit dingers? I'm looking forward to finding out.

 

[WBT 20561]

And I apologize you couldn't find entertainment in Boras's typical bullshit

[ss13 1832]

On what planet did I mention Boras? The point of the post was to have fun with an article praising the current MLB contract with the most deferrals 4 years later. 

But do you, bro. 

[Don Johnson 4752]

Unrelated/related, Iverson's deal he signed with Reebok in 2001 guarantees him a $32 million trust fund at age 55.  He turned 45 this year.

 

https://bleacherreport.com/articles/2895210-allen-iverson-to-receive-32m-trust-fund-in-10-years-as-part-of-reebok-contract

[DanRydell 799]

On 7/1/2020 at 6:28 AM, WBT said:

Happy sportswriters don't understand the time value of money day

Are you taking the position that a guaranteed 8% rate of return for 35 years isn't a great deal for Bonilla?

[Pato del Muerto 52485]

43 minutes ago, DanRydell said:

Are you taking the position that a guaranteed 8% rate of return for 35 years isn't a great deal for Bonilla?

Especially when you consider what happened to the money the Mets deferred. Spoiler:  it did not earn them over 8% per annum and was not guaranteed. 

[The Dog 44017]

https://www.espn.com/mlb/story/_/id/40430232/bobby-bonilla-day-2024-new-york-mets-pay-119-million-every-july-1-ohtani-contract-deferred-money

bump

[boilerhorn 1372]

That article highlights some of the other deferred contracts that are still being paid out.

• Bobby Bonilla - Mets paying him $1.19mm per year through 2035
• Bret Saberhagen - Mets paying him $250k per year through 2029
• Ken Griffy, Jr. - Reds paying him $3.59mm per year through this year (he was the 4th highest paid red in 2023)
• Manny Ramirez - Red Sox paying him $2mm per year from 2011 through 2027

A couple other notes on Bonilla's deal.  Mets owed him $5.9mm in 2000 and decided to use their high returns from their Madoff investment to fund the annuity.  Oops.  Apparently Bonilla spent money as fast as it came in.  Bonilla's agent liked the deal because it *might* guarantee Bonilla would not be broke in 2002.

Edited July 3 by boilerhorn