Latest news with #BobbyBonillaDay
Yahoo
02-07-2025
- Business
- Yahoo
Why Bobby Bonilla's $30 million retirement deal wasn't as sweet as people think
Happy Bobby Bonilla Day? Yes, it's the day on which, once a year, sports fans and others go online and write about the supposedly amazing retirement deal that star third baseman Bonilla got when he left the New York Mets 25 years ago. My wife and I have $7,000 a month in pensions and Social Security, plus $140,000 cash. Can we afford to retire? 'Finance makes me break out in hives': I inherited $240K from my parents. Do I pay off my $258K mortgage and give up my job? I'm a stay-at-home mom. Do I take a part-time job to spend more time with my kids — or get a job for six figures? The last holdout bears are Democrats, these strategists say. Their capitulation could fuel the next leg higher for stocks. This income fund pays more than a bank account while keeping price volatility low Bonilla passed up a one-off $5.9 million payment in 2000 and opted for a deferred deal that would pay him $30 million over 25 years. That's meant a $1.2 million check on July 1 every year since 2011. Bonilla earns more than many active baseball players — the league minimum salary this season is $760,000 — even though he's now 62 and hasn't swung a bat professionally since 2001. Steve Cohen, the SEC-acquainted hedge-fund manager who now owns the Mets, has even talked about making 'Bobby Bonilla Day' some kind of thing at Citi Field. I got a press release on Monday from TIAA, the financial-services organization, calling Bonilla's deal 'legendary.' Trouble is, Bonilla's deal isn't quite as spectacular as many people seem to think. And it looks worse every year. The first thing to recognize is that Bonilla locked himself into a payment schedule that made no allowance whatsoever for consumer-price inflation over the life of the contract. Every year he gets $1.2 million, no matter what happens to prices in the economy. This year's check is already worth a third less, in purchasing power terms, than the one he got in 2011. If inflation averages just 2.3% a year for the next decade, as the bond market predicts, his final annual payout will have barely 50% of the purchasing power of the first one. Ouch. And Bonilla has been lucky. When he locked himself into this deal a quarter-century ago, it was just before inflation began plunging to its lowest levels since the Great Depression. In the first decade after Bonilla retired, prices rose by an average of just 2.5% a year. In the second decade they rose by just 1.7% a year. The stock and bond markets had no idea this was coming. Only recently have investors been reminded of how rare this is. Inflation averaged 5% a year in the 1980s and more than 7% in the 1970s. If something like that had happened after 2000, Bonilla would have been hosed. He would have found himself locked into a fixed-income deal with no way out. Bonilla was only 37 when he took this deal. Why he was locking himself into an annuity at that age is anyone's guess. Overall, when you look at the money he gave up and the money he's received since, Bonilla's deal has given him an internal rate of return of 8% a year. That's pretty good. It's nowhere near spectacular. Actually, Bonilla's smartest move would probably have been to take the $5.9 million when it was offered to him and to invest the money in real estate. U.S. house prices have risen about 5% a year on average since then, according to the Case-Shiller National Index, and that's just the gain from house-price appreciation: Landlords have earned at least the same again from rents. He'd have earned nearly 10% a year from New York City real estate. That's based on the price data for the city, from Case-Shiller, and rental yields, courtesy of real-estate firm CBRE. Many publicly traded residential real-estate investment trusts on the New York Stock Exchange have earned annualized returns of 10% to 13% a year since Bonilla signed his deal in early 2000. And that's factoring in the catastrophic plunge during the financial crisis. Meanwhile, over that period the Vanguard Total U.S. Stock Market Index Fund VTSMX has earned an average annual return of almost exactly 8%, while Vanguard Global Equity Fund VHGEX has earned more than 8.5% a year. Even many investment-grade corporate bonds were paying 8% or better back in 2000. Bonilla's really great financial moves were the deals he signed in the 1990s, starting with a five-year contract with the Mets worth about $70 million in today's money. The retirement deal he struck in 2000 has been no great shakes by comparison: an 8% return, and a big gamble on inflation. Spectacular? Hardly. Read on: Cristiano Ronaldo's new $700 million contract reportedly includes private jets and 16 personal staff. Here's how that compares with perks for other top athletes and CEOs. 'I do all the yard work, cooking and cleaning': I live with my daughter and her lazy boyfriend. She wants me to buy her house. Do I say yes? 'I'm single': At 70, I have $500,000 in stocks and $220,000 in savings. How do I invest my $130,000 windfall? A sputtering jobs market is now a top risk for stocks and bonds in the second half of 2025 My mother, 89, keeps getting her credit card scammed. She gets a new one — and it happens again. What's going on? Why out-of-favor Apple holds the key to tech stocks in the coming weeks Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Edmonton Journal
02-07-2025
- Business
- Edmonton Journal
Ex-MLB star rakes in $1.19M annually despite not playing for 24 years
Article content He's not Canadian and he's not an NHL free agent, but it's safe to say that nobody looks forward to July 1 as much as this guy. Article content While the first day of July marks Canada Day and signals the start of free agency for NHLers hoping to score big paydays, it is also recognized by some as 'Bobby Bonilla Day.' Article content Named for the 62-year-old former MLB star, it's safe to say there's at least one person who has the big day circled on his calendar. Article content Article content Bonilla signed with the Pittsburgh Pirates in the early 1980s and made his MLB debut with the Chicago White Sox in 1986. Article content He starred for teams including the Pirates, New York Mets and Baltimore Orioles, winning the 1997 World Series with the Florida Marlins. Bonilla was also a six-time All-Star and won the Silver Slugger Award three times in his career. Article content However, by 1999, he was on the decline in the middle of his second stint with the Mets, who ultimately decided to release him. Article content The stickler was that the Mets owed him $5.9 million to pay out the remainder of his contract. Article content Article content That's when Bonilla's agent went to the Mets with an offer: They would agree to have the payment deferred for a decade with interest. Bonilla would get paid over $1.19 million per year, every July 1 from 2011 to 2035. Article content While it meant the payout would balloon from $5.9 million to $29.8 million, the Mets agreed to the deal, in part because Mets owner Fred Wilpon was heavily invested with Bernie Madoff in his infamous Ponzi scheme at the time. Article content Wilpon believed that the 10% returns he was making on his investments with Madoff would outweigh the eight per cent interest he'd be required to pay to Bonilla on the $5.9 million, so he accepted the deal.
Toronto Sun
02-07-2025
- Sport
- Toronto Sun
Ex-MLB star rakes in $1.19M annually despite not playing for 24 years
Bobby Bonilla of the New York Mets is pictured in 1999. Photo by FILES / THE ASSOCIATED PRESS He's not Canadian and he's not an NHL free agent, but it's safe to say that nobody looks forward to July 1 as much as this guy. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account While the first day of July marks Canada Day and signals the start of free agency for NHLers hoping to score big paydays, it is also recognized by some as 'Bobby Bonilla Day.' Named for the 62-year-old former MLB star, it's safe to say there's at least one person who has the big day circled on his calendar. That would be Bobby Bonilla. That's because, every year on this day through to 2035, Bonilla collects a cheque for $1.193,248.20. Not too shabby considering the New Yorker hasn't laced up his cleats since 2001. The annual cash infusion comes courtesy of what is arguably the most infamous deferred payment setup in sports history. Bonilla signed with the Pittsburgh Pirates in the early 1980s and made his MLB debut with the Chicago White Sox in 1986. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. He starred for teams including the Pirates, New York Mets and Baltimore Orioles, winning the 1997 World Series with the Florida Marlins. Bonilla was also a six-time All-Star and won the Silver Slugger Award three times in his career. However, by 1999, he was on the decline in the middle of his second stint with the Mets, who ultimately decided to release him. The stickler was that the Mets owed him $5.9 million to pay out the remainder of his contract. That's when Bonilla's agent went to the Mets with an offer: They would agree to have the payment deferred for a decade with interest. Bonilla would get paid over $1.19 million per year, every July 1 from 2011 to 2035. While it meant the payout would balloon from $5.9 million to $29.8 million, the Mets agreed to the deal, in part because Mets owner Fred Wilpon was heavily invested with Bernie Madoff in his infamous Ponzi scheme at the time. This advertisement has not loaded yet, but your article continues below. Wilpon believed that the 10% returns he was making on his investments with Madoff would outweigh the eight per cent interest he'd be required to pay to Bonilla on the $5.9 million, so he accepted the deal. This advertisement has not loaded yet, but your article continues below. This advertisement has not loaded yet, but your article continues below. With that, each July 1, baseball fans celebrate the payout as an informal national holiday of sorts, complete with plenty of fun takes on social media. Bonilla isn't the only player receiving deferred money. Most notably, Los Angeles Dodgers superstar Shohei Ohtani is being paid $2 million per year over the length of his 10-year contract before getting paid $68 million per year from 2034 to 2043. Because a cheque for $1,193,248.20 each year is apparently not enough, Bonilla is also cashing in on another deferred contract. He gets paid another $500,000 from the Baltimore Orioles, having collected payment from the O's each year since 2004 and running until 2029. RECOMMENDED VIDEO Ontario Toronto Maple Leafs Toronto Maple Leafs Celebrity Ontario
Washington Post
02-07-2025
- Politics
- Washington Post
Democrats grapple with the party's ‘defund the police' past
Good morning, Early Birds. How did you celebrate Bobby Bonilla Day? Send tips to earlytips@ Thanks for waking up with us. In today's edition … Democrats grapple with policing headed into 2026 … All eyes on Susan Collins … You give us your views on being American … but first …
Yahoo
02-07-2025
- Sport
- Yahoo
Happy Bobby Bonilla Day! Why former Mets star and his contract are celebrated every July 1
For 16 seasons, Bobby Bonilla put up excellent numbers in the majors. The utility man recorded a strong 124 OPS+ over that period, making six All-Star games and finishing in the top three in MVP voting twice. But for all his accomplishments as a player, Bonilla is far more remembered for what came after. Advertisement In baseball circles, July 1 is recognized as Bobby Bonilla Day. On that day, baseball fans in the know celebrate one extremely smart decision by Bonilla and his agent when he was a member of the New York Mets. Bobby Bonilla Day explained Bonilla is celebrated every July 1 because that's the day the Mets have to pay him $1.2 million. Bonilla hasn't played in the majors since 2001, but he receives yearly checks from the Mets after agreeing to a deferred deal with the team in 2000. As a result, Bonilla will be paid $1.2 million by the Mets every year until 2035, when he'll be 72 years old. Bobby Bonilla Mets contract Bonilla initially signed a five-year, $29 million contract with the Mets ahead of the 1992 MLB season, but that's not the contract that led to Bobby Bonilla Day. After three-and-a-half seasons with the Mets, Bonilla was traded away. Advertisement After spending time with the Baltimore Orioles, Bonilla signed a four-year, $23.3 million contract with the Miami Marlins in 1997. That's the deal that resulted in Bobby Bonilla Day. While the Marlins handed Bonilla that contract, the team never intended to pay it out. After helping the team win a World Series in 1997, Bonilla was traded the following year in the team's infamous fire sale. He spent a half-season with the Los Angeles Dodgers before he was traded back to the Mets for the 1999 MLB season. Bonilla struggled that season, hitting just .160 over 141 plate appearances. At the end of the season, the Mets told Bonilla he was going to be released. But he still had $5.9 million remaining on his contract. Instead of paying out that $5.9 million to Bonilla immediately, the team wanted to defer payments on the deal, believing it could make more profit through investments with Bernie Madoff. As a result, the Mets agreed to pay Bonilla $1,193,248.20 every year, with those payments starting in 2011 and going until 2035. Advertisement The Madoff investment turned out to be a Ponzi scheme, one that was highly embarrassing for former Mets owner Jeff Wilpon. As a result, the $5.9 million that Bonilla was owed has swelled to $29.8 million. That's not a bad deal for a player who hasn't taken a major-league at-bat since 2001. Do the Mets celebrate Bobby Bonilla Day? Under Wilpon's ownership, the Mets didn't exactly broadcast the fact that they needed to pay a former player nearly $1.2 million every season due to a bad investment by the team's owner. That changed after Steve Cohen purchased the team in 2020. The Mets don't hold a ceremony or celebration in honor of Bonilla, but Cohen has acknowledged the unofficial baseball holiday on social media, calling it his "favorite day of the year." Cohen assumed those payments after taking ownership of the Mets, and it's nice to see he has a good sense of humor about the whole thing. MLB deferred contracts Bonilla is far from the only MLB player to receive deferred money from a team. The practice has become more popular over the years. The Washington Nationals made a habit of signing players to deferred deals during their contention window between 2012 and 2019. Advertisement The Los Angeles Dodgers will pay deferred money to Freddie Freeman and Mookie Betts long after they are finished playing, though of course the team's most famous deferred deal is the 10-year, $700 million contract signed by Shohei Ohtani. That deal contains a staggering $680 million in deferred money. There's evidence that Bonilla's deal wasn't the first time an MLB team issued deferred payments to a player. Catfish Hunter, Sparky Lyle, Bruce Sutter and Jim Rice were among the players who reportedly received deferred money from teams prior to Bonilla's buyout agreement with the Mets. Advertisement Bonilla's agreement with the Mets also isn't his only deferred payment from an MLB team. He receives $500,000 from the Orioles every year. Those payments started in 2004 and were set to end 25 years later. Bobby Bonilla stats It's easy to forget, but Bonilla was a pretty excellent player in his MLB career. The utility man — who spent time at first base, third base and in the outfield — hit .279/.358/.472 over 16 seasons in the majors. That figure resulted in a 124 OPS+ for Bonilla, meaning he was 24% better than the average major-league hitter during his era. At his peak, Bonilla was among the best hitters in the game. From 1988 through 1991, he hit .284/.359/.495, with 98 home runs, in four seasons with the Pittsburgh Pirates. He made the All-Star team each season during that stretch, finishing second in the NL MVP voting in 1990 and third in voting in 1991. His contract might get all the attention, but Bonilla was a pretty excellent player during his era.
