The Mets paying Bobby Bonilla $1.2M every July 1st until 2035 is one of the all-time financial disasters in sports.
But here's the thing — it wasn't stupid at the time.
In 2000, they deferred $5.9M at 8% interest. Why? Because they thought they were earning 10-12% with Madoff.
The math worked. The trade worked. Until it didn't.
This is the problem with leverage and assumed returns. When your "edge" disappears, the structure kills you.
Every July 1st is a reminder: don't build your life or portfolio around returns you don't actually control.
But here's the thing — it wasn't stupid at the time.
In 2000, they deferred $5.9M at 8% interest. Why? Because they thought they were earning 10-12% with Madoff.
The math worked. The trade worked. Until it didn't.
This is the problem with leverage and assumed returns. When your "edge" disappears, the structure kills you.
Every July 1st is a reminder: don't build your life or portfolio around returns you don't actually control.