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2017 MLB Season - The Goat Memorial Thread

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Re: 2017 MLB Season - The Goat Memorial Thread

Twitch Boy said:
The sad part is that at the time the buyout was a smart plan - the interest on the buyout was 8 percent annually and they had an investor who was making them 10 percent annually, so doing the buyout like they did and investing the net present value was a slam dunk.

The problem was that investor was named Bernie Madoff.
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Is this true?
 
Re: 2017 MLB Season - The Goat Memorial Thread

dxmnkd316 said:
Is this true?
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Yep.

Bonilla's agent, Dennis Gilbert, was an insurance agent at the same time he developed into a superagent (Gilbert's clients included Bonilla, Barry Bonds, Jose Canseco and Danny Tartabull), so he was more uniquely prepared to understand annuity-type payouts than other agents.
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The Mets have never really talked about the deal, but it is well known that their owners, the Wilpons, had many accounts with investor Bernie Madoff. Madoff was returning 12 to 15 percent a year in what we now know were fictional returns. So deferring deals wasn't a problem because the payout would occur years later and the interest rate would be lower than the money they were (fictionally) getting back from Madoff. To see the deal as the Mets would have seen it, let's say the Wilpons put $5.9 million into a Madoff account in 2000 and got a conservative (by Madoff standards) 10 percent annual return. By 2011, when they would have to pay Bonilla for the first time, they would have already grown their pot to $16.83 million. Even with paying off Bonilla every year, they would wind up with a $49 million profit on the deal. Of course, the Madoff returns weren't real, which complicates this hindsight.
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Re: 2017 MLB Season - The Goat Memorial Thread

dxmnkd316 said:
That is so Mets it hurts.
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Although it seems like Peak LOLMets, it actually still was a good deal for the Mets from a TVM POV.

Bonilla '35 is not among the hundreds of things I am mad at the Wilpons for.
 
Kepler said:
Although it seems like Peak LOLMets, it actually still was a good deal for the Mets from a TVM POV.

Bonilla '35 is not among the hundreds of things I am mad at the Wilpons for.
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I'm still sad that the Wilpons didn't get the chance to ruin the second NY MLS team.
 
Re: 2017 MLB Season - The Goat Memorial Thread

Umpire Angel Hernandez has filed a racial discrimination suit against MLB.
 
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