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In response to
"Say what you will about Bobby Bonilla, that was a very savvy business decision."
by
David
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"Only years later would it become clear why Wilpon went for the deferral: The $5.9 million went into a Madoff account"
Posted by
pixitude (aka chris)
May 3 '12, 17:55
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which was theoretically supposed to collect a double-digit interest rate over the life of the agreement. Only about an 8 percent return would have been needed to pay Bonilla his $1.2 million a year from 2011 to 2035. The Mets did the math and figured they'd be able to turn a $60-70 million profit on the arrangement.
Of course, we know what happened next. Not quite three years before the payments were to start, Madoff's Ponzi scheme blew sky-high. Wilpon's investments were gone, as was much of his income. Seduced by the prospect of turning a $5.9 million debt into 10 times as much free money, the Mets didn't have a dime set aside for the $29,831,205 they'd guaranteed Bonilla. In fact, without an emergency loan procured from MLB, they might not have been able to make the first payment."
ha ha. hahaha.
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Responses:
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