Bobby Bonilla

Bobby Bonilla. The name is synonymous with unusual, long-term deferred payment contracts in Major League Baseball. But who is he, and how did he secure such a famously lucrative deal?

Roberto Martin Antonio Bonilla, born in the Bronx, New York, was a talented right fielder and third baseman who played in MLB from 1986 to 2001. He was a six-time All-Star, a three-time Silver Slugger Award winner, and even won a World Series with the Florida Marlins in 1997. He was known for his power at the plate, and his aggressive style of play.

However, Bonilla’s career will forever be intertwined with the New York Mets. In 1992, they signed him to a then-groundbreaking five-year, $29 million contract, making him one of the highest-paid players in the game. His performance with the Mets was initially strong, but it declined in later years. By 1999, the Mets were eager to part ways with the aging Bonilla, whose performance no longer justified his salary.

Here’s where the legend begins. Bonilla was owed $5.9 million for the 2000 season. The Mets, looking to free up salary cap space to sign other players (specifically, pitcher Mike Hampton), proposed a creative solution: defer the $5.9 million payment. Instead of paying him the lump sum, the Mets agreed to pay Bonilla approximately $1.19 million every year for 25 years, starting July 1, 2011, and ending in 2035. This arrangement included an 8% interest rate. The total payout to Bonilla would be around $29.8 million.

At the time, the Mets’ ownership, led by Fred Wilpon, believed they had a shrewd plan. They were heavily invested with Bernie Madoff, and were convinced that Madoff’s investment firm would generate returns significantly higher than the 8% interest rate they were paying Bonilla. They thought they were getting a bargain. Of course, Madoff’s Ponzi scheme collapsed in 2008, leaving the Mets financially devastated and the deferred payment contract a stark reminder of their misjudgment.

Now, every year on July 1st, “Bobby Bonilla Day” is celebrated (or perhaps lamented) by Mets fans. It’s a quirky reminder of financial mismanagement and the long-term consequences of short-sighted decisions. While some view it as a symbol of the Mets’ past woes, others see it as a humorous quirk of baseball history. Regardless, the phrase “Bobby Bonilla Day” has entered the lexicon of sports finance, serving as a cautionary tale about the risks of deferred payment contracts and the importance of due diligence in investments.

Bonilla himself has maintained a relatively low profile since retiring. He has embraced the notoriety surrounding his contract, and seems to take it all in stride. He is, after all, getting paid millions of dollars years after his playing days are over. And while the Mets’ ownership may regret the deal, Bobby Bonilla can certainly celebrate every July 1st.