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  1. #16
    Join Date
    Oct 2008
    Location
    Chi-Town
    Posts
    6,647
    Quote Originally Posted by Jeffy25 View Post
    Deferred money.

    It's the time value of money.

    they owed him $5.9M in 2000.

    That money is worth $9M today in a standard inflation calculator. It's worth $15.1M if we go back 35 years, which is the length of time this deal takes to run through.

    And this spreads out through 2035.

    The value of $5.9M to the franchise in 2000 when it's value was around $450M compared to today when it's worth north of $2B. That's 5 times what it was worth, and that value of the money then compared to today through 2035 is insane.

    The Mets would likely do that same deal again.

    Teams will defer money everywhere they can. They can reinvest that cash to make a good amount more.

    If they had $5.9M sitting in the stock market at the average rate of return of 7% annually, that $5.9M is worth $413K per year. Over 35 years, that is worth $14.5M. Making the total asset value over $20M. They are paying him a total of $29M, and they would also collect interest on their current returns before paying out throughout the first half.

    It's likely a wash to the franchise, or close to it.

    People act like it's some horrible deal for the Mets, it's really not.


    Plus, I'm certain there is a tax benefit to Bonilla in this process. Which is the real value he probably sees. Yes, $5.9M was turned into $29M. But his taxable income in 2000 had to be significantly greater than the rest of his lifetime, and he gets a nice return on basically investing in the Mets franchise.


    That's how you brake things down.

    #FreeYagyu And CSSTL

  2. #17
    Join Date
    Dec 2008
    Location
    Brooklyn New York
    Posts
    18,035
    Quote Originally Posted by Dugmet View Post
    You lost Z when you started doing math.

    Deferring Bonilla’s money was a win/win for the Mets and for Bonilla at the time since the $5.8 buyout would presumably have come from funds in a Madoff account which was earning 11% or better interest.

    Fans don’t understand how Mets ownership was using Madoff accounts to support payroll - at least indirectly. For example the Mets “self insured” the Johan Santana contract with a Madoff account.


    Sent from my iPhone using Tapatalk
    Hey I resent that. He didn't lose me with the math, he just bored me half to death.

  3. #18
    Join Date
    Aug 2004
    Location
    The Boogie Down
    Posts
    94,268
    Quote Originally Posted by spliff(TONE) View Post
    Yeah. I don't see that $1MM/year having any significant impact on the Mets payroll and/or day to day activities.
    Ray would pay the electric bill and Mets would trade anybody it it saved them 1 million.


    Sent from my iPhone using Tapatalk

  4. #19
    Join Date
    Aug 2004
    Location
    The Boogie Down
    Posts
    94,268
    It’s just a yearly reminder of another bad decision by ownership.

    It may have made sense at the time since the criminal owners were collecting big returns from their partner madoff, but the optics now make it a lol yearly thing.


    Sent from my iPhone using Tapatalk

  5. #20
    Join Date
    Sep 2010
    Location
    East of the Sun, West of the Moon
    Posts
    27,077

    Happy Bobby Bonilla Day!

    Quote Originally Posted by Sick Of It All View Post
    It’s just a yearly reminder of another bad decision by ownership.

    It may have made sense at the time since the criminal owners were collecting big returns from their partner madoff, but the optics now make it a lol yearly thing.


    Sent from my iPhone using Tapatalk
    If it was a good decision at the time then it was a good decision.

    What crime did the owners commit? They were never charged with a crime.



    Sent from my iPhone using Tapatalk

  6. #21
    Join Date
    Aug 2004
    Location
    The Boogie Down
    Posts
    94,268
    A lot of criminals are never charged with crimes.


    Sent from my iPhone using Tapatalk

  7. #22
    Join Date
    Jan 2012
    Location
    Northport, NY
    Posts
    1,937
    Bobby Bo...… The gift that keeps on giving

  8. #23
    Join Date
    Feb 2009
    Posts
    40,042

  9. #24
    Join Date
    Sep 2012
    Location
    Modesto
    Posts
    1,379
    Quote Originally Posted by Dugmet View Post
    If it was a good decision at the time then it was a good decision.

    What crime did the owners commit? They were never charged with a crime.



    Sent from my iPhone using Tapatalk
    They weren't charged with a crime but didn't they have to give about 60 Million back to the government as part of a settlement?

  10. #25
    Join Date
    Nov 2008
    Posts
    3,866
    He probably only get 500 k after taxes but thats still pretty good

  11. #26
    Join Date
    Sep 2010
    Location
    East of the Sun, West of the Moon
    Posts
    27,077
    Quote Originally Posted by SfgiantsJD3 View Post
    They weren't charged with a crime but didn't they have to give about 60 Million back to the government as part of a settlement?
    Yes, but not bc they stole it. By the same token they also “received” money from the trustee as a credit against what they owed.


    Sent from my iPhone using Tapatalk

  12. #27
    Join Date
    Jul 2008
    Posts
    42,394
    The Braves have their own Bonilla deferment.

    The worst has got to be the one the Atlanta Braves have going with Bruce Sutter. Allow me to quote from a lengthy LA Times article from 1985 – the year that this monstrosity was set up:

    Sutter will receive a $750,000 salary for each of the next six years and a minimum of $1.12 million a year for the remaining 30 years of the contract. In addition, he will get the $9.1 million in so-called “principal” at the end.


    "You don't know how to drink. Your whole generation, you drink for the wrong reasons. My generation, we drink because it's good, because it feels better than unbuttoning your collar, because we deserve it. We drink because it's what men do."

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