Former Baseball Stars Who Still Get Massive Annual Payments: On Bobby Bonilla Day

Bobby Bonilla Day: Retired baseball player receives $1.2 million annually.

"Bobby Bonilla Day" took over Twitter on July 1, just like it does every year. This day holds significance because it represents the annual date when the former New York Mets player receives a staggering $1.2 million from the team, despite having retired over ten years ago.

The mastermind behind Bonilla's contract payout is his agent, Dennis Gilbert. In a strategic move, Gilbert orchestrated a deal that guarantees Bonilla $1.2 million each year from 2011 until 2035. To put this into perspective, the Mets initially owed Bonilla $5.9 million in 2000, but the new agreement grants him over $1 million annually, along with an additional 8% interest.

At the time, the then-Mets owner believed that he would reap substantial returns in the future. Unfortunately, this optimistic outlook was shattered when Bernie Madoff's hedge fund, which was supposed to generate these returns, turned out to be a Ponzi scheme.

It's worth noting that Bonilla, now 60 years old, is not the only retired baseball player with a lucrative deferred payment arrangement. Several other athletes also receive substantial deferred payments from teams they no longer play for.

For instance, Manny Ramirez, who last played for the Boston Red Sox in 2008, is currently receiving a 16-year, $32 million deferment contract. He will continue to be paid until 2025. Additionally, Ken Griffey Jr. receives $3.59 million annually from the Cincinnati Reds, the team he last played for in 2008, and his payments will continue until 2024. Todd Helton, who played for the Colorado Rockies until 2013, will receive $1.3 million annually until 2023 as part of a 10-year, $13 million deferred contract agreement. He also receives 3% interest.

Even some active players have similar arrangements. For example, Max Scherzer is set to receive a total of $105 million in deferred payments from the Washington Nationals until 2028, despite now playing for the Mets. Scherzer will receive $15 million annually from the Nationals for seven years.

Another intriguing case is that of Boston Red Sox infielder Rafael Devers. Although he recently signed a 10-year, $331 million contract extension that keeps him with the Red Sox until 2033, the team will continue paying him long after that. Boston is deferring $75 million of his contract, and Devers will receive semi-annual payments until 2043. By the time the installments are fully paid out, Devers will be 46 years old.

You may wonder why teams opt for deferred payments, even if it means paying more than the original owed amount. One reason is that it allows them to free up money at the time to invest in draft picks or free agents who can potentially strengthen the team's competitiveness.

It's important to note that all the examples mentioned above are specific to professional baseball players. While there are a few examples of stretched-out payment agreements in the NBA involving players like Kevin Garnett, Joakim Noah, and Larry Sanders, these cases are rare and often involve teams releasing players from their rosters to save money on the league's salary cap in the short term.

The current owner of the New York Mets, Steve Cohen, seems to embrace the hype surrounding Bobby Bonilla Day. He even tweeted about this annual tradition last year, displaying his enthusiasm for the occasion.

It's interesting to highlight that Bonilla's payment is currently higher than the salary of 11 out of the 34 players on the New York Mets roster, according to a contract monitoring site. It's worth mentioning that Bonilla last played for the Mets in 1999.

Some individuals view Bonilla's payout as an excellent example of compound interest. By choosing to defer $5.9 million in 2000 and opting for 24 years of payments with an 8% annual interest rate, Bonilla stands to receive approximately $30 million by the time he turns 72. Compound interest refers to earning interest on your earned interest, which can have a significant impact over time.

In conclusion, Bobby Bonilla's annual payment from the New York Mets continues to captivate attention and spark conversations each year. While he is not the only athlete with a deferred payment agreement, his case serves as a reminder of the intricacies and financial strategies involved in professional sports contracts.

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