Bobby Bonilla, the former third baseman for the New York Mets, has become infamous for his lucrative retirement deal. When he left the team in 2000, Bonilla signed a contract worth $5.9 million, but with an annual payment of $30 million spread over 25 years.
Critics claim that Bonilla’s deal was a sweetheart deal that benefited him significantly at the expense of the Mets. However, financial experts argue that the payments were structured to ensure a steady income stream for Bonilla during his retirement.
The main issue with the deal is that it came with no exit clause, meaning Bonilla could not leave the team and receive a lump sum payment. This meant he was locked into the contract for its full 25-year term.
In hindsight, many believe that Bonilla’s $30 million annual payments were less impressive than they initially seemed. Considering inflation, the equivalent annual payment in today’s dollars would be around $45 million.
Source: https://www.marketwatch.com/story/why-bobby-bonillas-30-million-retirement-deal-wasnt-as-sweet-as-people-think-60cf0697