Every July 1, the Mets pay Bobby Bonilla $1.19 million, highlighting MLB’s deferred contracts and contrasting superstar deals with rookie salaries in a unique financial spectacle.

With the arrival of July 1, Mets fans have a unique occasion to celebrate Bobby Bonilla Day. Why is this special? On this day, 62-year-old Bobby Bonilla receives a check for $1,193,248.20 from the New York Mets, a tradition continuing every July 1 from 2011 to 2035. Due to baseball's payment structure, Bonilla's annual earnings often exceed those of some emerging stars currently playing in the league.

The Mets are not unique in offering former players deferred payments, as evidenced by many renowned players, including former MVPs and Cy Young winners, still receiving salaries from previous teams. Recently, deferred payments have been a hot topic across Major League Baseball, notably with the Los Angeles Dodgers deferring $680 million of Shohei Ohtani's $700 million megadeal, with payments starting at $68 million annually in 2034.

Here’s a deeper understanding of Bonilla’s payday, deferred contracts in baseball, and how some current players are earning less than what Bonilla will receive from the Mets in 2025.

Why Does Bonilla Receive this Payment?

In 2000, the Mets decided to buy out the remaining $5.9 million on Bonilla's contract. Instead of paying him immediately, they agreed to annual installments of nearly $1.2 million over 25 years beginning July 1, 2011, with an 8% interest rate. The Mets had invested in a Bernie Madoff account promising substantial returns but this plan fell through. New owner Steve Cohen has suggested officially commemorating Bonilla Day at Citi Field since taking leadership of the team.

How Common is This Type of Agreement?

Bonilla last played for the Mets in 1999 and in the majors for the Cardinals in 2001, yet he will receive payments until 2035, when he turns 72. Here are other notable deferred-money contracts, according to ESPN Research:

• Bobby Bonilla (again): A secondary deferred-contract agreement with the Mets and Orioles pays him $500,000 yearly for 25 years, beginning in 2004.
• Bret Saberhagen: Gets $250,000 annually from the Mets for 25 years, also initiated in 2004 and inspired by Bonilla’s deal.
• Max Scherzer: Receives $105 million total from the Nationals through 2028.
• Manny Ramírez: Will collect $24.2 million total from the Red Sox through 2026.
• Chris Davis: Davis might become the new Bonilla, receiving $59 million in deferred payments over a 15-year period starting last year through 2037. He received $9.16 million in 2024 and will again in 2025, with $3.5 million payments from 2026 to 2032 and $1.4 million from 2033 to 2037.

  

Comparing Bonilla's Deal to Ohtani's Contract

The primary difference between Bonilla's and Ohtani's deferments is Bonilla's resulted from a buyout for an underperforming veteran, while Ohtani's was negotiated during his prime free agency period. Ohtani’s extraordinary agreement pays him $2 million annually during his 10-year contract with the Dodgers, with deferred payments of $68 million per year from 2034 to 2043. This method provides the Dodgers with more short-term financial flexibility and reduces their competitive balance tax liabilities by considering only the present value of the contract ($46 million annually) for CBT payroll considerations.

Bonilla's Payout Compared to 2025 MLB Salaries

As baseball’s salary structure typically sees young players beginning their career making considerably less than Bonilla's $1.19 million annual payout, the following players will earn less in 2025 (ordered by Fangraphs WAR for Monday's games):

• Pete Crow-Armstrong: $771,000 (3.9 WAR)
• James Wood: $764,600 (3.5 WAR)
• Paul Skenes: $875,000 (3.4 WAR)
• Riley Greene: $812,400 (3.0 WAR)
• Hunter Brown: $807,400 (3.0 WAR)
• Andy Pages: $770,000 (2.9 WAR)
• Jacob Wilson: $760,000 (2.8 WAR)