Happy Bobby Bonilla Day!

Happy Bobby Bonilla Day to all who celebrate!  I've briefly mentioned this unofficial holiday within the New York Mets organization in the past (see "Win today, pay for it tomorrow...").  Every July 1st from 2011 through 2035, former Mets player Bobby Bonilla receives a check for $1,193,248.20 (don't forget to include the $0.20!).  I remember watching him play for the Pittsburgh Pirates from 1986-1991 alongside Andy Van Slyke and Barry Bonds - THAT was a spectacular outfield!  During his tenure with the Pirates, Bonilla was a four-time All-Star and three-time Silver Slugger Award winner (awarded annually to the best player at each position in both the American League and National League).  The Pirates won their NL East Division in 1990 and 1991 during Bonilla's tenure there, but they lost in the NLCS both years and failed to make the World Series.

Bonilla became a free agent following the 1991 season and signed what was at the time a record-setting contract ($29 million spread out over 5 years) in 1991.  He failed to live up to the hype, and his tenure with the Mets this first go-round was disappointing at best.  He played for the Orioles from 1995-1996, who reached the ALCS in 1996.  He then played for the Florida Marlins, helping them to win their first World Series title in 1997.   He was traded to the Los Angeles Dodgers for part of the 1998 season and then re-signed with the Mets in 1999.  

Again, his second stint with the Mets was as disappointing as the first.  Rather than paying the remaining $5.9 million owed on his contract, the Mets chose to defer the remaining money with interest in order to release Bonilla in 2000, agreeing to pay approximately $1.19 million every July 1st from 2011 through 2035 (notably, Bonilla was also paid $500,000 by the Orioles every year from 2004 to 2028 due to a similar deferred contract).  

The Mets used the $5.9 million contract buy-out to create an annuity with a securities investor that would pay them back in annual dividends.  The Mets hoped that this deal would free up money from their payroll for MLB bylaws purposes and avoid the so-called luxury tax.  Unfortunately, that securities investor was Bernie Madoff, an American financier and criminal mastermind of the largest Ponzi scheme in history.  Unfortunately, that investment didn't work out for the Mets, so now they are paying for it over time. 

I can't fault Bobby Bonilla and his agent for this brilliant negotiation, but on the same token I can't necessarily recognize them for an innovative approach because, it's not that innovative.  As it turns out, several players have had similar deals in the past:

I mentioned above Bobby Bonilla's deal with the Baltimore Orioles that pays him $500,000 a year for 25 years. Those payments began in 2004.

Former pitcher Bret Saberhagen will receive $250,000 a year from the Mets for 25 years (payments also began in 2004; this was the inspiration for Bonilla's deal - what is it with the Mets?!?!?!).

Current Texas Rangers pitcher Max Scherzer is set to receive $105 million total from the Nationals that will be paid out through 2028.

Manny Ramírez, who should be in the Hall of Fame in my opinion, will collect $24.2 million total from the Red Sox through 2026.

Hall of Famer Ken Griffey Jr.: Will receive $3.59 million from his hometown team, the Cincinnati Reds every year through the end of this year as deferral from his nine-year, $116 million deal signed in 2000.

Chris Davis and his deal with the Baltimore Orioles could be as lucrative and the most like Bonilla's deal.  He will receive $59 million in deferred payments during a 15-year stretch that started last year and continues through 2037 ($9.16 million in 2024 and 2025, $3.5 million from 2026 to 2032 and $1.4 million from 2033 to 2037).

What's notable is that several of these deals result in retired players making more than some current players do!  It's really incredible when you think about it.  When asked about, Bonilla, who is now 61 years old (and whose last game as a professional baseball player was more than 20 years ago in October 2001), said, "It’s kind of become like my birthday so to speak, right? It’s become that big...I don’t think people know the exact date of my birthday, but they certainly know when this deferred comp comes in, so it’s pretty cool in that respect."