Quote:
Originally Posted by Westheim
In essence, the Mets are paying more than they would have had to with an interest rate pegged to whatever federal interest rate they would have fancied, since we've basically had 15 years of next to no interest now, but to be honest, I'm fine with all of this.
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That's a good point. For much of this period so far, interest rates have been very low. I plugged in 2% and 1% and the value of Bonilla's later payments increased to much more than the original deferred payment.
The theory is, if the Mets were to make only those lower rates of interest on their original savings, the fact that they are now paying Bonilla those deferred amounts means they are net out of pocket.