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July 1 st of every year is known as Bobby Bonilla Day in the major league baseball world. Bobby Bonilla played professional baseball with the
July st of every year is known as Bobby Bonilla Day in the major league baseball world. Bobby Bonilla played professional baseball with the New York Mets. After the season, the Mets decided that Bobby Bonilla no longer fit into their plans. Rather than pay the $ million owed to Mr Bonilla in the year a settlement agreement was reached. The terms were as follows: no payments would be made from to and, beginning in the Mets would pay Bonilla $ per year until for a total of $ These numbers seem to indicate that Bobby Bonilla took advantage of the Mets, but daddress the following:
Describe in detail the significant facts used by each party to develop the agreement they established.
Explain the risks this agreement posed to each party including factors that complicated the deal.
From a financial point of view, who won this transaction? Use and show present and future value calculations, along with nonnumerical arguments.
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