Why the New York Mets pays Bobby Bonilla $1.19M every July
Starting in 2011 and continuing through 2035, Bonilla receives nearly $1.2 million annually, which includes an 8% interest rate
Every 1 July, known as Bobby Bonilla Day, the New York Mets pays former baseball player Bobby Bonilla $1,193,248.20, says ESPN.
This annual payment stems from a contract agreement made in 2000.
Instead of paying Bonilla the $5.9 million outright to buy out his contract, the Mets opted for deferred payments.
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Starting in 2011 and continuing through 2035, Bonilla receives nearly $1.2 million annually, which includes an 8% interest rate.
These payments will continue until 2035 when Bonilla is 72.
At the time, the Mets' ownership was invested in a Bernie Madoff account, which promised significant returns.
They hoped these returns would offset Bonilla's deferred payments. Unfortunately, the Madoff investment failed, but the agreement with Bonilla remained.
Deferred payments in baseball are not unique to Bonilla.
Many players, including past MVPs and Cy Young winners, receive similar payouts.
Recently, Shohei Ohtani's $700 million deal with the Los Angeles Dodgers included deferred payments starting in 2034.
Under new owner Steve Cohen, the Mets have embraced the quirky tradition of Bonilla Day, celebrating it annually at Citi Field.
