Show notes
Happy Bobby Bonilla Day. Every July 1st, the New York Mets pay Bobby Bonilla $1.2 million, and they will continue to do so until 2035. It is one of the most entertaining stories in the history of sports finance, and it involves Bernie Madoff, a deferred annuity, and a baseball player who got cut in 1999 and is still cashing checks. In Episode 194 of The Liquidity Event, AJ is joined by Kody Sherlund to break down why Bobby Bonilla Day is actually a masterclass in the time value of money, how Shohei Ohtani's $680 million deferred contract with the Dodgers is the modern version of the same story, and why buying a sports franchise has quietly been one of the best investments of the last 15 years. The Clippers sold for $2 billion in 2014 and are now worth $7.5 billion. The Knicks are worth $10 billion. The annualized returns rival the S&P 500. They also get into the rise of women's sports and why the money is finally following the talent, the NCAA's name, image, and likeness revolution, and what it actually means for 19-year-olds suddenly holding seven-figure endorsement deals, and why sports gambling is the PSA nobody asked for, but everyone needs. Topics covered: Bobby Bonilla Day explained, and the time value of money behind the deal Bernie Madoff's role in the Mets' deferred payment decision Shohei Ohtani's $680 million deferred contract with the Dodgers Why buying a sports franchise has been one of the best investments of the last 15 years The Clippers, the Knicks, and how sports team valuations have exploded The rise of women's sports and the investment opportunity it represents NCAA name, image, and likeness and what it means for college athletes financially Sports gambling and why it ruins people's lives Timestamps: 00:00 Intro, Happy Bobby Bonilla Day, and the Knicks' historic comeback 02:32 Bobby Bonilla Day explained and the time value of money 04:06 Bernie Madoff's role in the Mets' deferred payment decision 05:08 Shohei Ohtani's $680 million deferred contract with the Dodgers 07:09 Why investing in sports franchises has been such a great bet 09:53 The Clippers sold for $2 billion in 2014 and are worth $7.5 billion today 12:49 The rise of women's sports and the investment opportunity it represents 17:45 NIL deals, college athletes getting paid, and what it means financially 23:08 The cottage industry of financial advisors targeting college athletes 25:15 Sports gambling PSA and why it ruins people's lives 🔔 Subscribe to The Liquidity Event on YouTube: YouTube Channel 🌐 Learn more about Brooklyn FI financial planning: brooklynfi.com ✍️ Leave us a voicemail question for a future episode: memo.fm/theliquidityevent 📱 Follow Brooklyn FI: LinkedIn: / brooklyn-fi Instagram: / brooklyn_f.i