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Bobby Bonilla's 25-Year Contract with The New York Mets (2011)

businessinsider.com

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Re: Bobby Bonilla's 25-Year Contract with The New York Mets (2011)

#5
Einstein something, something, compound interest.

Amazing what saving money at an 8% interest rate will do for your future self! The S&P has only returned 4.8% CAGR [1] from 2000-2018 so that was a pretty tremendous ROI for Bonilla.

[1] - http://www.moneychimp.com/features/market_cagr.htm

Re: Bobby Bonilla's 25-Year Contract with The New York Mets (2011)

#7
The article doesn't mention that team owner Fred Wilpon thought deferring Bonilla's contract was a great idea because he could use the savings at the time to invest in Bernie Madoff's fund.

https://www.nytimes.com/2012/02/21/sports/baseball/mets-saw-...

Re: Bobby Bonilla's 25-Year Contract with The New York Mets (2011)

#10

Worst or best? That's quite a retirement plan. Edit: title changed on me.

Seems like it worked well for everyone. The Mets are paying out less than they would have if they'd paid the money at the time and because of the savings were able to acquire players that helped them go onto the WS. Bonilla keeps getting ~ a million dollars every year.
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