Tuesday, February 23, 2010

They Don't Call Him Bobby Bucks for Nothing

The following is not an example of the Mets ineptitude:

After Bobby Bonilla was playing cards with Rickey Henderson in the locker room during Game 6 of the NLCS, the Mets dumped him. But instead of paying his $5.9m salary up front, with Bonilla’s permission the Mets agreed to pay him $1.2m every July 1st for 25 years starting in 2011 and going until 2035.

Though that seems like a bad deal Master Bates ran the numbers and the Mets would have need roughly 8% return on their money (somewhat reasonable) to make this pay off for them.

For Bonilla it’s a guaranteed rate of return and large payments well into his later years.

The other angle for the Mets is this: in 2000, at the height of the dot-com boom Wilpon was probably putting all his money with Madoff. He probably thought he could turn $5.9m to $30m in about 5 years, not 25.

But once again, just to set the record straight, amid all the signs of the Mets’ incompetence, this is not one of them.

Story suggested by Juice

for once Steve Phillips didn't fuck anyone

1 comment:

The Concierge said...

Bonilla is much better than Nails at investment management.