Why do the Mets pay Bobby Bonilla 1,190,000 every July 1st? A look into the retired All-Star's enduring contract arrangement

Despite ending his playing career in 2001, former MLB outfielder Bobby Bonilla has a contract arrangement with the New York Mets where still gets paid on the 1st of July every year. Over his 16-year career in the major leagues, the former slugger had two spells with the New York side, the second a one-year stint in 1999.

During contract negotiations at that time, Bonilla deferred $5.9 million to be paid over 25 years with interest. Since then, the amount to be paid has increased to $29.5 million, which means he will collect $1.19 million every year from 2011-2035.

Bobby Bonilla was signed by the Pittsburgh Pirates and, despite a short stint with the Chicago White Sox, went on to spend six years with them. He soon established himself as one of the best sluggers in the league, which earned him a then-record $29 million contract with the New York Mets. During the second half of his career, he bounced between five different teams, returning for a second spell with the Mets in 1999.

While Bonilla was released after a lackluster season, the Mets still owed him 5.9 million. The parties then came to an arrangement where the player would defer the payment for a decade, and then be paid over 25 years (2011-2035) with an 8% interest.

Following the Mets' scandal involving Bernie Madoff in 2008, the value of the contract increased to $29.5 million. Hence, Bonilla collects $1.19 from the Mets on 1 July every year, the day which has been dubbed "Bobby Bonilla Day."

How Bobby Bonilla's deferral with the Mets has impacted MLB contracts today

Since former MLB star Bobby Bonilla's contract deferral with the New York Mets following the 1999 season, several players in the major leagues have followed suit and signed similar contracts. Some retired players who are similarly still collecting deferred payments from their clubs include Ken Griffey Jr. with the Reds, Manny Ramirez with the Red Sox and Chris Davis with the Orioles to name a few.

The biggest deferred contract payment belongs to Shohei Ohtani with the Los Angeles Dodgers. Having signed the biggest contract seen in the sport last winter, the Japanese star has deferred $680 million of his $700 million salary to be paid between 2034 and 2043.