In the history of deferred comp, salary annuitization, and smart (brilliant!) retirement planning, few top the windfall ex-baseball player Bobby Bonilla receives every July 1.
By now the story is well-tread; in an effort to unload his almost $6 million salary in 2000, the New York Mets struck a deal with Bonilla to delay his payout for a decade, and to then begin paying him $1.19 million every year through 2036. He hasn’t played for the team since 1999, but still, the checks keep rolling.
The reasoning—and their beleaguered fans know this is so typical of the Mets—was the high returns they were receiving at the time from their money manager; so high, in fact, it would more than cover the payout with some leftover for the team.
The problem is that said money manager is now prisoner No. 617-27-054 in Federal Corrections in North Carolina, aka Bernie Madoff.
Bobby Bonilla Day is celebrated each year at the beginning of July, part recognition of his financial prowess, part sticking it to “Dem Amazin’ Mets” for somehow finding yet another way to lose.
Home run
But an even sweeter deal is too often overlooked. It involves the Atlanta Braves and Bruce Sutter.
Back in 1985, according to Fansided.com, the HOF pitcher inked a deal for six years that was worth $4.8 million and another $4.8 million deferred at 13 percent interest.
It meant a guarantee of no less than $1.12 million annually for 30 years after the contract was up. The New York Times estimated an amount closer to $1.3 million per year.
Unfortunately, the gravy train is approaching the station, with Sutter payments set to end in 2021, more than 3 ½ decades after it began and almost as long since his MLB retirement.
He’ll now have to find another source of retirement income. We wish him well.