Bobby Bonilla has been out of Major League Baseball since 2001. But he’s still getting paid over a million dollars a year from the New York Mets—a payment he receives each July 1, which is why this day on the calendar has widely become known as “Bobby Bonilla Day” in honor of his now-legendary contract.
“July 1st is guaranteed income, steady, simple, and secure. Doesn’t suck.”
Bobby Bonilla
This contract, which saw him defer payment for 10 years (an unusual move at the time) allowed for the accrual of interest and resulted in the continued payout of $1.2 million annually, similar to a fixed annuity, each July 1.
“Every July 1st, that check hits. It’s peace of mind knowing that no matter what, that’s locked in,” said Bonilla, who this year has teamed up with TIAA and Nuveen to produce a short film, The Big Deal, based on Bonilla’s contract to demonstrate the power of guaranteed income. “July 1st is guaranteed income, steady, simple, and secure. Doesn’t suck.”
The power-hitting Bonilla was one of MLB’s top players in the late 1980s and early 1990s, and signed with the New York Mets during the 1991-92 offseason, becoming the highest-paid player in the league at the time while earning about $6 million per year. He struggled to live up to expectations with the Mets, and is now best remembered for the long-term financial security he gained via the deal, which has now been replicated by none other than today’s biggest MLB star, Shohei Ohtani of the Los Angeles Dodgers.
In 2023, Ohtani signed a record-setting $700 million, 10-year contract loaded with deferred salary that will have Ohtani collecting $68 million annually from 2034-43.
The Bonilla deal
Bonilla’s deal all started in 1999 when his agent, Dennis Gilbert, negotiated a deal with the Mets that bought out Bonilla’s final year and the $5.9 million salary owed to Bonilla for the 2000 season. Bonilla, a six-time All-Star player who was best known for his time with the Pittsburgh Pirates, had just faced a subpar season with the Mets in 1999, where he batted just .160 in 60 games.
Rather than accepting the $5.9 million lump sum, Gilbert and Bonilla convinced the Mets to defer the money for over a decade in exchange for a guaranteed 8% interest rate.
“We weren’t trying to grab the biggest number up front—we were thinking long-term. The goal was to take some of that uncertainty out of the future,” Bonilla said.
“Bobby Bonilla’s deal demonstrates the wisdom of thinking beyond lump sums to create lasting security,” said TIAA Chief Product and Business Development Officer Colbert Narcisse. “His story perfectly captures what TIAA has been advocating throughout our history—reliability matters more than potential windfalls when planning for a lifetime of financial needs.”
Because former Mets owner Fred Wilpon was invested in disgraced financier Bernie Madoff’s Ponzi scheme, which was promising 10% to 15% yearly returns at the time, he agreed to the deal.
At the time, Wilpon and the Mets believed they would make a significant profit if the Madoff scheme took off, therefore Bonilla’s new arrangement seemed to be no big deal.
By the end of the deal, Bonilla is expected to collect an additional $23.9 million by the time he reaches age 72—all because he deferred his salary by a decade.
Not just for sports stars
In 2025, Bobby Bonilla Day isn’t just a pop culture phenomenon, it’s a powerful reminder about smart planning, financial literacy, and the value of guaranteed income. But guaranteed income isn’t just for sports stars—and you don’t need millions to reap the benefits.
“What Bobby Bonilla secured through an iconic contract, we’re now working to make available to everyday Americans through their workplace retirement plans.”
Nuveen’s Brendan McCarthy
In fact, regular workers can also access pension-like security in retirement—something TIAA and Nuveen are making a point of in their new campaign with Bonilla.
“What Bobby Bonilla secured through an iconic contract, we’re now working to make available to everyday Americans through their workplace retirement plans. The demand for predictable, guaranteed income that can’t be outlived is universal,” said Brendan McCarthy, Head of Nuveen Retirement Investing.
“Our research shows that participants want guaranteed income in their 401(k) plans,” McCarthy added. “Just as Bobby has confidence in his July 1st check, we’re focused on creating that same peace of mind for all retirement plan participants.”
Participants are encouraged to check to see if their employer offers access to lifetime income products through their retirement plan as defined contribution retirement plans are increasingly incorporating lifetime income solutions.
“When considering annuities, start with your workplace retirement plan. The institutional options there have often been vetted by financial professionals with your best interests in mind,” McCarthy said. “Annuities offered by your employer typically offer a trifecta of benefits: lower costs, absence of lockup periods, and freedom from sales commissions—advantages rarely found in retail markets.”
McCarthy noted that as the retirement landscape has shifted from traditional pension plans to 401(k)s, it has left the majority of American workers with Social Security as their only source of guaranteed income in retirement. But that is changing with the help of the SECURE Act and SECURE 2.0 provisions. “We’re bringing back the security of pension-like income without abandoning the flexibility of defined contribution plans,” he said.
As for Bonilla, he said that kind of security is something he’s grateful for and it gave him room to enjoy the game and life after it.
“It’s lasted longer than most careers,” he said of the deal. “That kind of consistency let me focus on what mattered, and being present without constantly looking over my shoulder.”
Watch the short film: The Big Deal.
SEE ALSO:
• Shohei Ohtani’s New ‘Retirement Plan’ Dwarfs Bobby Bonilla’s
• ‘Bobby Bonilla Day’ Rings in July
• TIAA Lifetime Income Annuities Now Available in IRAs