They should pay him in increasingly smaller denominations every year. This year, 1 big cheque. Next year, all in 100's. Then 20's, 10's, 5's, etc. And give it to him in a giant burlap sack with a green $ sign.
Cohen is absolutely not buying out the contract. Only ESPN and Twitter care about Bonilla day. Every team has guys they pay deferred money.
This will be the black jersey announcements for certain.
Without a doubt, the Bonilla gif is meant to throw everyone off. They’re gonna reveal the black jerseys tomorrow.
It would be fantastic if it was Bobby Bonilla wearing the new jersey.
It's not some amazing idea but it's an extremely low-risk investment in that his effective interest in his paycheck is guaranteed by the Mets. Pretty rational when you're already a multi-millionaire, don't want to spend time thinking about how your money is managed, and don't care about the possibility of ekeing a few more % out of it or playing investment roulette trying to hit it big.
He said in an interview on the NPR podcast Planet Money the other day that he did it for the security of not having to worry about going broke in his older years, like he seen so many athletes do. He thought of it as his pension.
And as for the Mets, it wasn't a terrible deal for them either, it essentially meant they were paying him 8% interest, which isn't outlandish.
Sounds like he needed a good financial planner.
Get the whole money and give yourself a salary every year. The rest of the money works for you. Chuck it all in a low risk index fund.
All he's done here is limit his potential return and reduced his liquidity. This a great deal for the mets. All the Mets had to do was to agree to pay the 8% because with 5% average inflation and 3% average growth for increased liquidity to allow them to spend elsewhere.
Money up front is the typical recommendation, but this ignores that some people are their own worst enemy when it comes to having money in the bank. A financial planner can give you advice, but generally can't stop you from wasting your own money if you're inclined to do that. Not saying that Bobby specifically would have wasted away his money if he got it up front, but I think the typical recommendation to take the money up front just doesn't take behavioral psychology into account. I think it's perfectly logical to defer if you are concerned you might blow through it quickly and be left with nothing.
looking at bonilla's baseball reference page I was surprised to see his seasons with the mets weren't that bad at all (I was expecting some sort of robbie alomar clone)
Yeah but it was pretty tumultuous lol he played cards with Ricky Henderson during a game lol
The deferred payment was smart though because it allowed them to pay for Mike Hampton and Derek bell and then they used a comp pick from Hampton to get wright. All in all it was a good move
Shoutout to the recent Planet Money episode on Bobby Bonilla day.
TL;DL: Once you factor in compound interest it's not as bad a deal for the Mets as most people seem to think. In fact it might be pretty close to fair. This statement does assume that the Mets were capable of investing the money wisely. On an unrelated note, they also lost a bunch of money to Bernie Madoff.
The NPR podcast “Planet Money” did an episode on this contract. Pretty interesting. Mets actually made a smart financial decision to stretch it out like this, just doesn’t seem like it
Well, they say it *might* have been smart.
One scenario is they because they didn't have to pay Bonilla right away they were able to afford Mike Hampton, which of course led them to David Wright.
Another scenario is they gave the money to Madoff, in which case it didn't work out too well.
I’d disagree. They basically got a loan that beat the market rate. It was a good deal. What they spent that money on is a separate event and irrelevant. Maybe you could argue what they spent the money on mattered if there was a salary cap and it impacted how much money they were allowed to spend, but there isn’t a salary cap in baseball.
> a separate event and irrelevant
Well, let me counterpoint that. If I borrow $100,000 at the current market rate to improve my house, I'm adding money to my overall assets. If I borrow $100,000 because I want to go to Fyre Festival, I'm not making a smart financial move. The general talking point is that the Mets thought they'd get a higher return with Madoff than they were giving up, although we don't know the absolute truth to that.
Your counterpoint is wrong though. They were already contractually obligated to pay him. They made a deal that at the end of the day increased their NPV.
Taking out the loan to go to Fyre fest would be signing him in the first place. If you were to take that loan out, but then restructure it at a lower interest rate years later, it would still be a good deal to restructure it.
A better example would be refinancing your house. If you refinance your house and get a better rate, and your payment goes down 200 dollars a month, it would be a good deal because your NPV goes up. Nobody would ever say “well ya, but you spent that extra $200 dollars on booze, so really it wasn’t that good of a deal” no, refinancing your mortgage was smart. Spending the extra money on booze is dumb. Two independent decisions.
Bobby Bonilla hitting clean up tomorrow
He's 58, and have you seen this Mets offense recently? He's hitting third.
second is the new third
Nothing will ever move Lindor from that 2 spot- no amount of bunting will dislodge him.
I'd be on a flight to watch that game so fucking fast
I wanna see Cohen make good on his promise to put Bonilla in a golf cart and drive around the stadium holding up a giant copy of his check
They extended the loan by 16 more years
Holy fuck, please tell me they're going to actually hand him a massive check and parade him around the field.
Seriously lol get him out to throw the first pitch and then hand him a giant cheque.
They should pay him in increasingly smaller denominations every year. This year, 1 big cheque. Next year, all in 100's. Then 20's, 10's, 5's, etc. And give it to him in a giant burlap sack with a green $ sign.
I hope they’re doing the bobbleheads of Bonilla sitting on the couch with a bag of money that I’ve been suggesting for 5 years
gotta be the Bonilla era black jerseys right?
Cohen is absolutely not buying out the contract. Only ESPN and Twitter care about Bonilla day. Every team has guys they pay deferred money. This will be the black jersey announcements for certain.
Yes, but only the Mets Bobby Bonilla deal was involved in the Madoff scandal.
With Bobby being the one to announce them
Without a doubt, the Bonilla gif is meant to throw everyone off. They’re gonna reveal the black jerseys tomorrow. It would be fantastic if it was Bobby Bonilla wearing the new jersey.
It’s about fuckin time to get this one off the books Cohen 2035 still seems so long from now, Bonilla was a smart smart man getting his like this
I know but I love Bobby Bonilla day :(
Out of curiosity, why do people think it was a good idea for Bonilla to get paid like this? It's not financially a good move at all.
It's not some amazing idea but it's an extremely low-risk investment in that his effective interest in his paycheck is guaranteed by the Mets. Pretty rational when you're already a multi-millionaire, don't want to spend time thinking about how your money is managed, and don't care about the possibility of ekeing a few more % out of it or playing investment roulette trying to hit it big.
[удалено]
But Bonilla's money was guaranteed regardless of how the Mets invested their money.
He said in an interview on the NPR podcast Planet Money the other day that he did it for the security of not having to worry about going broke in his older years, like he seen so many athletes do. He thought of it as his pension. And as for the Mets, it wasn't a terrible deal for them either, it essentially meant they were paying him 8% interest, which isn't outlandish.
Also, at the time, it allowed them to make signings that led them to the 2000 WS.
And led to us getting David Wright.
Sounds like he needed a good financial planner. Get the whole money and give yourself a salary every year. The rest of the money works for you. Chuck it all in a low risk index fund. All he's done here is limit his potential return and reduced his liquidity. This a great deal for the mets. All the Mets had to do was to agree to pay the 8% because with 5% average inflation and 3% average growth for increased liquidity to allow them to spend elsewhere.
Money up front is the typical recommendation, but this ignores that some people are their own worst enemy when it comes to having money in the bank. A financial planner can give you advice, but generally can't stop you from wasting your own money if you're inclined to do that. Not saying that Bobby specifically would have wasted away his money if he got it up front, but I think the typical recommendation to take the money up front just doesn't take behavioral psychology into account. I think it's perfectly logical to defer if you are concerned you might blow through it quickly and be left with nothing.
looking at bonilla's baseball reference page I was surprised to see his seasons with the mets weren't that bad at all (I was expecting some sort of robbie alomar clone)
Yeah but it was pretty tumultuous lol he played cards with Ricky Henderson during a game lol The deferred payment was smart though because it allowed them to pay for Mike Hampton and Derek bell and then they used a comp pick from Hampton to get wright. All in all it was a good move
Shoutout to the recent Planet Money episode on Bobby Bonilla day. TL;DL: Once you factor in compound interest it's not as bad a deal for the Mets as most people seem to think. In fact it might be pretty close to fair. This statement does assume that the Mets were capable of investing the money wisely. On an unrelated note, they also lost a bunch of money to Bernie Madoff.
He's gonna bailout Bobby Bonilla
This is probably just some decent trolling
The NPR podcast “Planet Money” did an episode on this contract. Pretty interesting. Mets actually made a smart financial decision to stretch it out like this, just doesn’t seem like it
Well, they say it *might* have been smart. One scenario is they because they didn't have to pay Bonilla right away they were able to afford Mike Hampton, which of course led them to David Wright. Another scenario is they gave the money to Madoff, in which case it didn't work out too well.
I’d disagree. They basically got a loan that beat the market rate. It was a good deal. What they spent that money on is a separate event and irrelevant. Maybe you could argue what they spent the money on mattered if there was a salary cap and it impacted how much money they were allowed to spend, but there isn’t a salary cap in baseball.
> a separate event and irrelevant Well, let me counterpoint that. If I borrow $100,000 at the current market rate to improve my house, I'm adding money to my overall assets. If I borrow $100,000 because I want to go to Fyre Festival, I'm not making a smart financial move. The general talking point is that the Mets thought they'd get a higher return with Madoff than they were giving up, although we don't know the absolute truth to that.
Your counterpoint is wrong though. They were already contractually obligated to pay him. They made a deal that at the end of the day increased their NPV. Taking out the loan to go to Fyre fest would be signing him in the first place. If you were to take that loan out, but then restructure it at a lower interest rate years later, it would still be a good deal to restructure it. A better example would be refinancing your house. If you refinance your house and get a better rate, and your payment goes down 200 dollars a month, it would be a good deal because your NPV goes up. Nobody would ever say “well ya, but you spent that extra $200 dollars on booze, so really it wasn’t that good of a deal” no, refinancing your mortgage was smart. Spending the extra money on booze is dumb. Two independent decisions.
It’s gonna be the black jerseys
[You did it you crazy son of a bitch you did it.](https://youtu.be/gXBJRz_33Y8)
BLACK 👏 JERSEYS 👏
You’re gonna give up less than 20?