Why One MLB Team is Paying a Player $1.2 Million a Year Until 2035—Two Decades After His Last Game

He hasn’t worn a baseball glove in 24 years, yet Bobby Bonilla still makes headlines—and a big paycheck—every July 1. This day is celebrated by New York Mets fans as Bobby Bonilla Day.

Bonilla retired in 2001, but he gets nearly $1.2 million annually from the Mets until 2035. The deal stems from a contract arranged by his agent, Dennis Gilbert. Bonilla last played for the Mets in 1999, and by the time his payments stop, he will be 72 years old.

How did he score such a lucrative deal? The answer lies with the Mets’ former owner, Fred Wilpon, and disgraced financier Bernie Madoff. When the Mets wanted to let Bonilla go in 1999, he still had $6 million left on his contract. Wilpon was confident he would gain big from investments with Madoff, who ultimately led him into a massive Ponzi scheme that defrauded many.

Instead of just paying Bonilla, Wilpon chose to defer the payments, hoping to invest the money elsewhere. Gilbert negotiated a deal to delay the payments until 2011, offering an interest rate of 8%. Bonilla’s percentage is based on Madoff’s scheme, which became infamous when it collapsed.

Madoff passed away in 2021, serving 150 years in prison for his multi-billion-dollar scam. As for Bonilla, he stands to make about $29.8 million because of Wilpon’s decision.

Deferred payments are relatively common in Major League Baseball. For instance, in 2023, Shohei Ohtani signed a massive 10-year, $700 million contract with the Los Angeles Dodgers. He opted to defer a significant $68 million of his salary annually, meaning he will receive $68 million yearly from 2034 to 2043.

The Dodgers have frequently implemented deferred payments in deals, creating a trend in MLB contracts. This practice isn’t new; it began gaining traction in the 1960s with “The Dolgoff Plan,” developed by accountant Ralph Dolgoff. His plan helped the American Basketball Association (ABA) compete with the NBA by making long-term contracts attractive.

Though Bobby Bonilla is perhaps the most well-known case of deferred payments, he is not alone. Many players have taken advantage of these arrangements, illustrating how financial strategies in sports evolve.

Understanding these trends can provide insight into how athletes manage their finances. It’s also a reminder of how past decisions continue to impact lives, especially in the world of sports.

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