But I'd like to try to set the record straight on something. Most fans who know of Bobby Bo and his history with the Mets know that in his exiting agreement, Wilpon and Co, decided to pay him out in an annuity fashion, starting in 2011, until 2035. I know, it looks bad that a guy who hasn't played in over 10 years for the team will be back on the payroll next season, until most of us are walking around CitiField with our canes. I was talking about this the other day that while managing an inept organization, the Wilpons are good at one thing, and that's making money. This Bonilla deal was intentional.
Once upon a time in a land far, far away (called Jersey), I was completing my MBA program. One of the topics I found very fascinating was the time value of money. What was $1mm back in 1999 would be worth more than that today due to TVM. According to the agreement inked with the Mets in 2000, Bobby Bo would be paid out from 2011 to 2035, with payments adding up to nearly $5.9 million.
Sure, most of us would enjoy getting free money to the neighborhood of $30 mm total over a period of 25 years. Had the Mets paid out Bobby Bo in 2000 the $5.9 million he was owed, it would have benefited him more, had he put it in a high-interest bearing account, more than likely would have made more money than getting the pay-out later on.
I'm not defending the move...but I understand. When I took this class back a few years ago, I went from not understanding why they would make a deal like this to thinking it wasn't so bad after all.
So when Bobby Bo gets back on the payroll in 2011, just remember, the Mets actually kinda fleeced him and not the other way around.