It’s time again: Ex MLB player Bobby Bonilla gets a check worth more than a million dollars from the New York Mets. A team he hasn’t played for in over a decade. The justification is complex.
Bobby Bonilla last played in the MLB in 2001, but is still paid. The New York Mets, for whom he last played in 1999. Since 2011, the 54-year-old has received a cheque for $1,193,248.20 every year on July 1.
But how did it come about? Well, the Mets who fired Bonilla before the 2000 season still owed the versatile outfielder $5.9 million in salary. But instead of collecting the entire sum directly, both sides agreed to postpone the payment – with eight percent interest.
Interest increased the 5.9 million dollars to 29.8 million dollars and divided by 25 – the agreement is valid from 2011 to 2035 – results in just that 1,193,248.20 dollars.
But even though this deal may seem crazy at first glance, deferred salary payments are not uncommon in MLB. Max Scherzer, for example, will still be collecting 15 million a year from 2022 to 2028 from the Washington Nationals seven years after the end of his current contract – but without interest.
What makes the Bonilla deal crazy is the fact that the player will earn an extra $23.9 million in interest – without swinging a bat once. He will collect his last cheque at the age of 72.
This article was published without previous view by the Major League Baseball.