The Mets Owe Bobby Bonilla $29 Million Because of Bernie Madoff

In 2000, the New York Mets wanted Bobby Bonilla gone. He was 37, past his prime, and owed $5.9 million on his contract. The simplest option: pay him and move on.

Mets owner Fred Wilpon had a better idea.

The Deal

Wilpon proposed deferring Bonilla's $5.9 million. Instead of a lump sum, the Mets would pay him $1,193,248.20 every year on July 1st, starting in 2011 and ending in 2035. The total payout: approximately $29.8 million.

On paper, it looked like the Mets were paying five times what they owed. But Wilpon wasn't worried. He planned to invest the $5.9 million with his financial advisor, a man named Bernie Madoff, who was consistently delivering annual returns of 10-12%. At those returns, the investment would far outpace the deferred payments.

The math made perfect sense. The investment did not.

The Ponzi Scheme

In December 2008, Bernie Madoff was arrested for running the largest Ponzi scheme in history, defrauding investors of approximately $65 billion. The Mets' investment evaporated. The team eventually settled with the Madoff trustee for $162 million.

The $5.9 million that was supposed to generate easy returns was gone. The $29.8 million in payments to Bonilla was not.

Bobby Bonilla Day

Every July 1st, "Bobby Bonilla Day" trends on social media. Baseball fans celebrate a man who hasn't played a game since 2001 collecting more than most active players earn. The Mets will continue writing checks until Bobby Bonilla is 72 years old.

All because Fred Wilpon trusted Bernie Madoff with the savings.