[Oscar_Stanage]

Originally Posted by Snapolit1

Only reason this story even exists is because of financially unsophisticated people piling on the “same old Mets” for what they believe was an insanely stupid deal. The fact that this becomes a huge story every year is a testament to the degree of financial illiteracy in the country.

They basically gave him an annuity. The same thing state lotteries give you if you hit Powerball or a Vegas casino does if you are lucky enough to hit a massive slot machine. Or a structured settlement in a catastrophic injury law suit. It’s almost like there’s some advantage somewhere to holding on to the money you owe someone.

its actually was a good deal for the team even though it gets press as if it were stupid. They paid 8% interest on the deal.. At the time (2000), 30yr Treasuries were 6-6.5%. Based on this data point, if they went to a bank for a 30-year loan to pay Bonilla the original $6mm, they would likely have had to pay more than 8% (Treasuries + 3-4%) and pledge collateral (which they did not have to with Bonilla) In addition, I am sure there are other benefits dealing directly with the player.