Bobby Bonilla & the Mets

• Con_Alma

  http://espn.go.com/mlb/story/_/id/16650867/why-mets-pay-bobby-bonilla-119-million-today-every-july-1-2035
  
  This is amazing. The Mets are still paying Bonilla and will continue to do so through 2035.
  
  ...deferred money plus 8% interest.
• thavoice

  Yep. Griffey Jr still getting paid too.
  
  I think that practice ended though with contracts!
• Con_Alma

  ???
  
  What do you mean?
  
  The reason he continues to get paid was because the parties agreed to defer in a contract.
• thavoice

  I mean I don't think teams are still doing this in new contracts.
  BUt I could be wrong.
  
  

  Con_Alma;1802005 wrote:???
  
  What do you mean?
  
  The reason he continues to get paid was because the parties agreed to defer in a contract.

• Con_Alma

  Thanks for the clarification. I don't believe so either.
• GOONx19

  

  So is this the better deal for him, or could he have netted a better return if he had invested? I haven't started earning enough to invest yet so I'm honestly wondering.
• Al Bundy

  GOONx19;1802028 wrote:So is this the better deal for him, or could he have netted a better return if he had invested? I haven't started earning enough to invest yet so I'm honestly wondering.

  With so many stories of athletes going broke, the deal at least protected him against himself.
• Con_Alma

  ...better deal than what alternative? We can't assume he would have got the deal at all if it weren't deferred. We don't know that the Mets would be willing to have paid him the money present day so this may have been the only way to get the whole contract value. Clearly the Mets didn't want to do that or they would have.
  
  It's not just about the possibility of getting better than an 8% return. It may be > 8% of a much lower total contract amount.
• Ironman92

  

  Al Bundy;1802031 wrote:With so many stories of athletes going broke, the deal at least protected him against himself.

  This IMO. He just would've lost it all in a restaurant venture probably.
  
  I think last year he was the highest paid Mets OF until they picked up Cespedes.
• Iliketurtles

  

  GOONx19;1802028 wrote:So is this the better deal for him, or could he have netted a better return if he had invested? I haven't started earning enough to invest yet so I'm honestly wondering.

  I read somewhere with the way the markets are right now doing what he did is probably a better deal for him. Can't remember where I saw the article at though. It didn't go into too much detail either.
• SportsAndLady

  

  Can't imagine this was a better deal for him. It's almost always a better idea to take the lump sum in current time than payments at a later time.
• OSH

  

  GOONx19;1802028 wrote:So is this the better deal for him, or could he have netted a better return if he had invested? I haven't started earning enough to invest yet so I'm honestly wondering.

  Don't want to move away from the thread, but I'm sure you can start. It's always better to start throwing money into a Roth IRA when you can instead of waiting until you "earn enough."
  

  SportsAndLady;1802088 wrote:Can't imagine this was a better deal for him. It's almost always a better idea to take the lump sum in current time than payments at a later time.

  In my little figuring, if he took the lump sum and put it in an account that returned 8%, he would have the SAME cash value ($29.8m) by 2021. So, he'd have the same cash value 5 years from now and 14 years earlier than he'd have the annual payments.
  
  If he takes the money until 2021 and puts it into an 8% account, it'd be worth $8m then. But, at the end of the deal (24 years or whatever), the money is actually close to the same come 2035. The lump sum invested in 8% returns around $87m per year (2000-2035) and annual payments invested in 8% returns around $86m per year (2011-2035).
• GOONx19

  

  OSH;1802171 wrote:Don't want to move away from the thread, but I'm sure you can start. It's always better to start throwing money into a Roth IRA when you can instead of waiting until you "earn enough."

  It's not that I'm not saving anything. We have 10% going into a Roth IRA through my 403b (+5% matches), 25% for short term savings (house and car soon), and our minimum student loan payment is equal to 30% of our pre-tax income. Add in rent, utilities, cell, Internet, etc and we don't really have a whole lot left over until we finish our residencies.
• Con_Alma

  Jr. still getting paid by the Redlegs too???? Wow.
  
  Robert Raiola, CPA ‏@SportsTaxMan 2h2 hours ago Ken Griffey Jr. Is still being paid by #Reds. He receives approx $3.59m per year until 2025. #MLB #HOFWKND
  
  1,908 retweets 1,488 likes
• Ironman92

  

  Good for Griffey
  
  The feeling that my Reds were getting the most exciting and best player in baseball back at the turn of the century was the best sporting news of my life. It sucks sucks sucks that he broke down and really at no point was ever THE Ken Griffey Jr.