AuTX Buckeye
Founder & Pres of the Flemming/Holtmann Fan Club
Yahoo Pickem Champ
Former Game Champion
I have seen something saying ... between the state and the feds ... that 340 is gonna look at lot more like 140 after the tax man comethPeople make such a big deal out of that contract. It was just smart money on both sides but in dollar amounts that make it seem crazy to most people. Media, true to form, sensationalizes it at every opportunity.
The Mets deferred his payments for 11(!) freaking years. In return Bobby Bonilla got a 25 year annuity for $1.19MM per year with a guaranteed 8% annual return.
Given the context MLB team revenues, $1.19MM is chump change and every year out into the future you go with it, the value drops (time value of money) even more. They were given 35 years to pay a guy back money they owed him.
On his side, it's a a damn nice pension with a cost of living allowance built in that actually mimics the real rate of inflation. Also worked for him that he could afford to wait those 11 years for it because he was rolling so well in his playing days.
Good deal all around imo.
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