13
2012
Heyman: Bay’s Salary Being Deferred For Only Two Years
An article by 
Jon Heyman of CBS Sports writes that Jason Bay may have gotten a better deal for himself by leaving the Mets than he did when he initially signed with them.
Not only will Bay be paid the entire $21 million he is owed by the Mets, as has been reported, but the $15 million that is being deferred under the terms of the severance agreement is to be paid by the end of 2015, meaning the deferred monies will be paid only over an additional two years, CBSSports.com has learned.
Neither side would comment on the deferred payments, but sources familiar with the deal say the short deferral — the deferred monies are to be paid in five installments — means the present-day value of the contract is worth only about $850,000 less than the full $21 million. Had the team simply cut him, they would have had to pay him all the money by the end of 2013.
The Mets and the outfielder made the surprise agreement to part ways with a year to go on his $66-million, four-year deal. Originally, the Mets had said Bay would be coming to spring training.
This sounds like a deal that benefits both sides. It gives the Mets room to be more flexible while deferring Bay’s money to 2015 when the financial picture will be better than it is now as they continue to revive what almost was a dire situation. The recovery continues.
About the Author: Joe DeCaro
I'm a lifelong Mets fan who loves writing and talking about the Amazins' 24/7. From the Miracle in 1969 to the magic of 1986, and even the near misses in '73 and '00, I've experienced it all - the highs and the lows. I started Mets Merized Online in 2005 to feed my addiction. Follow me on Twitter @metsmerized.
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step by step
Seems like a win for the Mets as well because if it’s only over the course of the next 2-3 years then it still is likely to be much less of a burden on the Mets payroll this upcoming season. Unless they only deferred like 3M of it which would be pointless anyway.
I’d still like to know how the money was divided up. Is it 7mil a year for three years? Probably not…
I’m guessing it’s more like 15mil this year and three mil the next two years.
Any less than that then it wouldn’t be worth it for Bay to take the buyout.
I don’t know if this makes a dent in Sandy’s payroll plans for I remember what he said last winter, that he wasn’t going to spend all his allocation over the winter but keep some in reserve for use during the season (though we know he wound up not using much of it anyway).
Better than the Bonilla deal, I guess.
Not really…
the Bonilla deal was designed for the mets to make buku cash…
they took BB’s money and invested it with Bernie…getting 18% and giving back BB 8% back
The Mets wasn’t getting 18% from Madoff…it was closer to 10%.
But the Bonilla was a good deal for both parties. Mets got to defer payments and invest the money (probably with Madoff) and because of interest and the complete devaluing of our dollar, still made out good on the deal.
Bobby Bo made out because he got the Mets to give him basically a guaranteed that a positive return and allows him to get a nice yearly salary late in his life when he otherwise may not have a source of income.
Actually it was said their returns ranged FROM 12-18%
Those numbers are inaccurate. The thing with Madoff wasn’t the huge returns, it was his ability to consistently deliver them even if the market dropped. Anyone who new that market and worked hard and had a little luck good do better than Madoff, but Madoff’s numbers were guaranteed.
That’s why the SEC never went hard after Madoff even when people raised questions about what he was doing.
I’ve done a lot of research on the matter (even as recent as yesterday) and found that there was a lot of miss information about the whole mess. And for those who think that Wilpon was the devil in the deal, what Wilpon put in a took out was chump change compared to the “Big Players”. The Wilpons just got all the attention because Picrad knew he could use the media against them.
If the Wilpons and Katz have to sell within two years then by 2015 the deferred amount of 15M will be assumed by the new buyer’s). The new buyers will then have this amount accounted for as an additional cost/investment for their purchase of the Mets.
If the team does sell, it will go for $1.5 billion, pretty sure that 15 mil would be a drop in the bucket. But I’m pretty certain Katz and Wilpon are here to stay. Long after they’re gone the grandchildren will be running things.
Actually, I used the 16 percent figure only because that was determined as the average annual return Madoff got for all his clients.
It’s not a settlement if you pay ALL the money. Bobby Jenks settled with the Red Sox for 70-75%. Why is it that it seems like the Mets can’t do anything right when it comes to money. Settle for less and pay it later. It’s just more ammo for Sandy to say they have no money when they’re still paying for Bay.
Yes I am pessimistic about anything Sandy Balderson does or doesn’t do.