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Thread: Bobby Bonilla and the Mets

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    Member Oxilon's Avatar
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    Bobby Bonilla and the Mets

    I'm not sure if this has been posted in the past or if anybody can confirm this. Either way, if true, this just confirms Steve Phillips may be the worst GM of all time.

    Instead of picking up [Bonilla's] $5.9 million salary for the 2000 season, the team pledged to pay him $1,193,248.20 each July 1st from 2011 to 2035 nearly $30 million all told.
    http://phourforphour.wordpress.com/2...a-the-mets-do/

    Can somebody explain the rationale behind this at all?
    That hit was plenty fair. Atleast by a quarter of an inch.
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    breath westofyou's Avatar
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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by Oxilon View Post
    I'm not sure if this has been posted in the past or if anybody can confirm this. Either way, if true, this just confirms Steve Phillips may be the worst GM of all time.



    http://phourforphour.wordpress.com/2...a-the-mets-do/

    Can somebody explain the rationale behind this at all?
    It's true, and IIRC last year was the last time the Braves had to pay 110K to Al Hrabosky from a contract written in the early 80's.

    I believe it's a robbing Peter to pay Paul move.

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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by Oxilon View Post
    Can somebody explain the rationale behind this at all?
    Win now?

    The belief has been that there will always be more money in the future than there is now. That's been a reasonable thing for front offices (and players) to believe for the last 30 year, although perhaps not to this degree. It's part of the reason salaries escalate. Really this last couple of years was the first time owners managed to keep costs contained for a year or two.
    "Even a bad day at the ballpark beats the snot out of most other good days. I'll take my scorecard and pencil and beer and hot dog and rage at the dips and cheer at the highs, but I'm not ever going to stop loving this game and this team and nobody will ever take that away from me." Roy Tucker October 2010

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    Waitin til next year bucksfan2's Avatar
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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by dfs View Post
    Win now?

    The belief has been that there will always be more money in the future than there is now. That's been a reasonable thing for front offices (and players) to believe for the last 30 year, although perhaps not to this degree. It's part of the reason salaries escalate. Really this last couple of years was the first time owners managed to keep costs contained for a year or two.
    When you were making 12% from Bernie Madoff over the course of a couple of decades you roll the dice on matters like this. I guess that could be their logic for this one.

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    Re: Bobby Bonilla and the Mets

    running a quick spread sheet, that a 7.75% rate of return for ol' Bobby. Recent markets fluxutaions aside, that's less than the historical average rate of return on the DOW. Given the length of that deal, its not nearly as bad of a deal as it may look at first. Its basically a structured annuity, though I suppose Bonilla runs the risk that current Mets ownership has to file bankruptcy (which is a real possiblity I'd imagine) and he may only see a fraction of that contract.

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    Rally Onion! Chip R's Avatar
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    Re: Bobby Bonilla and the Mets

    IIRC, they wanted Bonilla gone so badly that they negotiated that deal with him. It does seem odd that they wouldn't just release him and pay him the $5.9M rather than $30M in the future.
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    Re: Bobby Bonilla and the Mets

    though I'm sure they didn't turn around and invest that $5.9 mil, so if you just look at it as a % of the team payroll, Bonilla's $5.9 mil was roughly 8% of their 2000 team payroll. The $1.2 mil owed this year, and going forward would represent less than 1% of their current team payroll, and presumably turning into a smaller % of the payroll as team payrolls rise thru future seasons.

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    Danger is my business! oneupper's Avatar
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    Re: Bobby Bonilla and the Mets

    There's an old thread on this somewhere. I worked it out like medford, to an 8% yield for Bobby.

    Bobby's agent should be commended for getting him a nice annuity and deferring taxes to boot.

    Of course, that was when the Wilpons thought Madoff was good for 12%/yr on their cash.


    And here is the thread

    http://www.redszone.com/forums/showthread.php?t=81550
    Last edited by oneupper; 03-21-2011 at 03:02 PM.
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    Stat Wanker Hodiernus RedsManRick's Avatar
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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by Oxilon View Post
    I'm not sure if this has been posted in the past or if anybody can confirm this. Either way, if true, this just confirms Steve Phillips may be the worst GM of all time.



    http://phourforphour.wordpress.com/2...a-the-mets-do/

    Can somebody explain the rationale behind this at all?
    To be fair, if you account for inflation, that worth a lot less than $30M in year 2000 dollars.

    If the cumulative annual growth rate is:
    2%: $19.1M
    3%: $15.5M
    4%: $12.6M
    5%: $10.3M

    Furthermore, you have to account for the time value of money. That is, if you gave Bonilla $5M in 2000, it would be accruing interest above the level of inflation. Instead that's money the Mets get to pocket.
    Games are won on run differential -- scoring more than your opponent. Runs are runs, scored or prevented they all count the same. Worry about scoring more and allowing fewer, not which positions contribute to which side of the equation or how "consistent" you are at your current level of performance.

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    Waitin til next year bucksfan2's Avatar
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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by RedsManRick View Post
    To be fair, if you account for inflation, that worth a lot less than $30M in year 2000 dollars.

    If the cumulative annual growth rate is:
    2%: $19.1M
    3%: $15.5M
    4%: $12.6M
    5%: $10.3M

    Furthermore, you have to account for the time value of money. That is, if you gave Bonilla $5M in 2000, it would be accruing interest above the level of inflation. Instead that's money the Mets get to pocket.
    At the same time if you gave Bonilla the money in 2000 you would have had the tech bubble as well as the market collapse of 2008. Couple that with the investment mistakes that athletes are prone too this is an even better deal.

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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by medford View Post
    though I'm sure they didn't turn around and invest that $5.9 mil, so if you just look at it as a % of the team payroll, Bonilla's $5.9 mil was roughly 8% of their 2000 team payroll. The $1.2 mil owed this year, and going forward would represent less than 1% of their current team payroll, and presumably turning into a smaller % of the payroll as team payrolls rise thru future seasons.
    Let's hope they didn't invest it, because if they did we all know where they put it.
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    I remember one time going out to the mound to talk with Bob Gibson. He told me to get back behind the batter, that the only thing I knew about pitching was that it was hard to hit.

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    Member medford's Avatar
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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by paulrichjr View Post
    Let's hope they didn't invest it, because if they did we all know where they put it.
    I wonder what the obligations, if any are to Bonilla if they have to put in a Bankrupt filling. I suppose MLB wouldn't allow things to get to that. The owner, might have to file, but the team would be sold prior to avoid the bad press, but who knows. I'd be a little nervous if I was Bonilla. If it were me, I'd have taken the money then and made sure I had control of it. Though, perhaps the deal allowed him to become a free agent, and sign an additional decent size contract on top of that, rather than being stuck w/ the mets who didn't want him.

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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by RedsManRick View Post
    To be fair, if you account for inflation, that worth a lot less than $30M in year 2000 dollars.

    If the cumulative annual growth rate is:
    2%: $19.1M
    3%: $15.5M
    4%: $12.6M
    5%: $10.3M

    Furthermore, you have to account for the time value of money. That is, if you gave Bonilla $5M in 2000, it would be accruing interest above the level of inflation. Instead that's money the Mets get to pocket.
    To go a little further, if the Mets invest the 5.9 million in a bond or any investment vehicle returning 8% or higher they break even over the long run. Which is typically an average rate for some corporate bonds or other high yield bonds that are a little more risky, but not junk status. The stock market usually return above 10% annually over history. Of course it did not happen this way over the course the 2000-2010, but this is the way financial officers tend to think.
    Last edited by Griffey012; 03-21-2011 at 08:36 PM.
    "Today was the byproduct of us thinking we can come back from anything." - Joey Votto after blowing a 10-1 lead and holding on for the 12-11 win on 8/25/2010.

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    Party like it's 1990 Blitz Dorsey's Avatar
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    Re: Bobby Bonilla and the Mets

    What's sad is Steve Phillips' taste of women is even worse.

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    Re: Bobby Bonilla and the Mets

    Quote Originally Posted by Blitz Dorsey View Post
    What's sad is Steve Phillips' taste of women is even worse.
    I am incredibly happy I read this. Made my night!


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