Finance fund fact.

Finance fund fact. Every year on July 1st, the New York Mets are contractually obligated to pay Bobby Boia 1.19 million dollars. The Wall part though is Boia doesn't play for the Mets anymore. In fact, he's been retired since 1999. So Boia first went pro in 1991 and quickly became one of the best switch hitters of all time. But by 1999, Boia had been underperforming due to injuries and had a rocky relationship with Mets management. So the team decided to release but the team still owed him $5.9 million under the terms of his contract. However, rather than paying the full amount up front, the Mets and Boga agreed to a defered money contract where Boga would receive no payments for 10 years, but beginning in 2011, he would receive $1.19 million annually on July 1st for 25 years, totaling 30 million. When the payments end in 2035, Boga will be 72 years old. many fans criticized and still criticized the deal saying he met turned a $6 million obligation into a $30 million payout. But if you calculate the present value of the dollars when Bonna made the decision, he actually earned 8% on his money. A respectable but not absurdly high figure. As for the Mets, well, they actually invested the money with Bernie Madoff. So the Mets owners were quite tight with Madoff and Madoff had been putting up consistent returns of 10, 12, even 15%. But when Madeoff's slogan was unlocked in 2008, the fallout nearly bankruptted the Mets who were forced to return 162 million dollars of previously withdrawn uhficious profits and even had to take an emergency loan from the MLB just as they sold. Ultimately, their cash crunch paid the way for the sale of the team to hedge fund boss Steve Cohen. But wait, if the Mets had gone bankrupt, would Bobby Baney still have gotten the money? Uh, I don't know, but I do know, today is July 1st, so happy compound interest day. You mean Bobby day. Hope you enjoyed this.