Bobby Bonilla, a notable MLB hitter in the 1990s and a World Series champion with the Florida Marlins in 1997, became legendary not just for his on-field accomplishments but also for his groundbreaking deferred payment arrangement with the New York Mets.

Faced with the decision to buy out the remainder of Bonilla’s contract in 2000, the Mets opted for a deferred payment plan. Instead of paying the $5.9 million upfront, they agreed to pay Bonilla $1,193,248.20 annually from 2011 through 2035, thanks to an 8% interest rate included in the deal.

These innovative agreements, though complex, allow teams to manage financial commitments more strategically. Ohtani’s contract with the Dodgers mirrors Bonilla’s deferred approach. While Ohtani’s total deal is valued at $700 million, he will begin receiving annual payments of $68 million starting in 2034, with $680 million of the contract deferred.

In this era of mega-deals, such structuring offers teams the flexibility to invest ambitiously while maintaining financial stability. Ohtani’s signing is yet another testament to the evolving landscape of MLB contracts.

How Ohtani’s Dodgers contract differs from Bonilla’s infamous deal

Despite their apparent similarities, Ohtani’s contract with the Dodgers stands apart from Bonilla’s legendary deferred deal with the Mets. The primary distinction lies in the nature of these agreements; Bonilla’s deferred payments were the result of a buyout following an underwhelming performance, while Ohtani’s was a strategic financial move orchestrated by a premier player during the peak of his free agency.

This contract grants the Dodgers significant short-term financial flexibility, alleviating immediate salary cap constraints and reducing the team’s competitive balance tax liabilities. While Ohtani’s payout may seem substantial, the revenue he generates as one of MLB’s elite talents is expected to offset the financial commitment without strain.

Other players with Bonilla-style deals

Ohtani joined a cadre of players who have brokered deferred payment arrangements akin to Bonilla’s. Although none rival the anticipated earnings Ohtani will start accruing in 2034, they provide fascinating case studies in deferred compensation in MLB.

• Max Scherzer: The Nationals owe Scherzer $105 million in total deferred payments, scheduled through 2028.
• Bret Saberhagen: Inspired Bonilla’s approach, receiving $250,000 per year from the Mets for 25 years, with payments commencing in 2004.
• Bobby Bonilla: Bonilla also has a second deferred-plan with both the Mets and the Orioles that pays him $500,000 annually for 25 years, starting in 2004.
• Manny Ramirez: The Red Sox will dispense a total of $24.2 million to Ramirez in deferred payments through 2026.
• Chris Davis: Davis’s deal with the Orioles may rival Bonilla’s in notoriety, as he will receive $59 million in deferred payments over 15 years starting from 2021. This includes $9.16 million annually for 2024 and 2025, $3.5 million per year from 2026 to 2032, and $1.4 million annually from 2033 to 2037.

Happy Bobby Bonilla Day!

If anything, Bobby Bonilla became famous agreeing to one of the most bizarre and unique deals in sports history. He delayed the payment of his contract and, even though he hasn’t played in over a decade, he’s still getting money for his services.

The New York Mets parted ways with Bonilla in 2000 after his second stint with the team. So, why are they still paying him after 21 years? And why will they continue to pay himevery July 1until 2035?

What’s Bobby Bonilla Day?

Well, back in 2000, the New York Mets still owed Bobby Bonilla $6 millionfrom the remainder of his contract. Money was tight as they were investing in a Ponzi scheme led by Bernie Maddoff, so they thought of an alternative plan.

Instead of paying Bonilla the $6 million, they agreed to delay the payments until 2011. Then, every July 1 he would get nearly $1.2 million dollars until 2035, thus turning those $6 million into $29 million.

Bobby Bonilla Speaks On Mock Holiday

So, after a decade of collecting checks from the Mets organization, the 58-year-old finally opened up on this infamous mock holiday that most fans have celebrated every July 1 for the past decade:

“No one will forget July 1,” Bonilla said.“Strangers will stop me and say, ‘Oh, my God, that’s the greatest deal ever.” “Indeed, it is!” he replies.

So, the next time you want to get involved ina fishy investment scheme, just remember that the New York Mets lost a bunch load of money from that rip-off and that they’re still paying for a guy that hasn’t been on their roster for over 20 years now.