I feel like this is less of a “LolMets” thing now that Steve Cohen is owner. Like this amount of money for Bonilla is less than 6 thousandths of a percent of Cohen’s net worth. This isn’t even a penny’s worth to Uncle Steve. Still, my takeaways are that GM’s need be careful when doing deferred contracts and billionaires shouldn’t exist
Specific-Mongoose-93
If not for inflation he would have won the contract, but when inflation is factored in really hurts his earnings.
Wraithfighter
Bobby Bonilla agreed to exchange his $5.9m salary for the 1999 season, in exchange for annual payments of $1.19m, starting in 2011 through 2035, a total of $29.8m.
If Bonilla had instead declined the offer and taken the money he was due, and put it into a form of investment that earns 5% interest, it would be worth $10.09m already. By the time the contract as stated will pay it, it would be worth $34.1m (or so?).
Admittedly, the above is with an online calculator (but the math is pretty simple) and ignores taxes (whose math *isn’t* simple), but the whole thing still feels more like a wash overall. Bonilla probably gets more overall due to taxes being handled differently (maybe? I’m not an accountant), but it really feels weird to mock the Mets about this, all things considered.
Away_Mistake8560
Ah, Bobby Bonilla Day! The gift that keeps on giving until 2035.
4 Comments
I feel like this is less of a “LolMets” thing now that Steve Cohen is owner. Like this amount of money for Bonilla is less than 6 thousandths of a percent of Cohen’s net worth. This isn’t even a penny’s worth to Uncle Steve. Still, my takeaways are that GM’s need be careful when doing deferred contracts and billionaires shouldn’t exist
If not for inflation he would have won the contract, but when inflation is factored in really hurts his earnings.
Bobby Bonilla agreed to exchange his $5.9m salary for the 1999 season, in exchange for annual payments of $1.19m, starting in 2011 through 2035, a total of $29.8m.
If Bonilla had instead declined the offer and taken the money he was due, and put it into a form of investment that earns 5% interest, it would be worth $10.09m already. By the time the contract as stated will pay it, it would be worth $34.1m (or so?).
Admittedly, the above is with an online calculator (but the math is pretty simple) and ignores taxes (whose math *isn’t* simple), but the whole thing still feels more like a wash overall. Bonilla probably gets more overall due to taxes being handled differently (maybe? I’m not an accountant), but it really feels weird to mock the Mets about this, all things considered.
Ah, Bobby Bonilla Day! The gift that keeps on giving until 2035.