The Legacy of Deferred Payments: Bobby Bonilla and MLB’s Long-Term Contracts

The calendar has turned to July 1, and that means one thing: It’s time for Mets fans everywhere to wish each other a Happy Bobby Bonilla Day! On Monday, 61-year-old Bobby Bonilla will collect a check for $1,193,248.20 from the Mets, as he has and will every July 1 from 2011 through 2035.

Because of baseball’s salary structure, Bonilla’s annual payday is often more than some of the game’s current young stars will make in a given year.

But the Mets are not alone in the practice of handing out deferred payments to star players long after they last suited up for the team, with past MVPs and Cy Young winners among the notable names still collecting annual paychecks from their previous employers.

This past offseason, deferred money became an even bigger talking point across the sport with Ohtani opting for a structure with the Dodgers that will delay payments for $680 million of his $700 million megadeal. He’ll start receiving $68 million per year in 2034.

In 2000, the Mets agreed to buy out the remaining $5.9 million on Bonilla’s contract. However, instead of paying Bonilla the $5.9 million at the time, the Mets agreed to make annual payments of nearly $1.2 million for 25 years starting July 1, 2011, including a negotiated 8% interest.

At the time, Mets ownership was invested in a Bernie Madoff account that promised double-digit returns, and the Mets were poised to make a significant profit if the Madoff account delivered — but that did not work out.

Under new owner Steve Cohen, who talked of celebrating Bonilla at Citi Field annually soon after taking over the team, the tradition continues. Bonilla last played for the Mets in 1999 and last played in the majors for the Cardinals in 2001, but he will be paid through 2035 (when he’ll be 72).

Here are some other notable deferred-money contracts, courtesy of ESPN Stats & Information: Bobby Bonilla (again), Bret Saberhagen, Nationals, Manny Ramírez, Ken Griffey Jr., Reds, Chris Davis will be making less than some young players this season.

The biggest difference in the two deferral-heavy deals is that Bonilla’s came as the result of a buyout by the Mets for an underperforming veteran, while Ohtani’s salary arrangement was proposed by a superstar at the height of his free agency.

In his unprecedented contract, Ohtani is being paid just $2 million annually during the 10-year length of his deal with the Dodgers. From 2034 to 2043, Ohtani will receive $68 million per year. Because baseball’s salary structure has young players start their careers by earning just over half of Bonilla’s annual $1.19 million, the following players will be making less than Bonilla this season according to Fangraphs WAR.