The worst part was that Sutter decided to use his big free agency contract as a financial planning opportunity. In addition, he will get the $9.1 million in so-called principal at the end. His Braves tenure was highlighted by injuries. (Photo by George Gojkovich/Getty Images). Sutter, a six-time All-Star who saved 300 games in his career, pitched for the Chicago Cubs, St. Louis Cardinals, and Atlanta Braves during his 12-year career. As The Athletics Dan Lewis reported, the Braves are still paying former reliever Bruce Sutter, who played with the Braves from 1985 to 1988. Bronner said the Cubs, because of their recent success, have high profits and are eager to take present tax deductions and wanted to pay the money up front. Bronner says this protects Sutter, since if inflation increases, the interest rate will probably rise, and the real value of his payments will be protected. . The Babe could spend his baseball salary as he wished, but the money from endorsements, barnstorming games and the Babes personal appearances went to Walshs office for saving. From the ways that athletes, executives, musicians and creators are moving the business world forward to new technologies, emerging leagues, and industry trends, Boardroom brings you all the news and insights you need to know At the forefront of industry change, Boardroom is committed to unique perspectives on and access to the news, trending topics and key players you need to know. . After the 1984 season, Sutter signed a six-year contract with the Braves that paid him $4.5 million and placed another $4.8 million into a deferred payment account that would pay him $1.3 million per year for 30 years after the contract expired. Those, too, were interest payments the Braves agreed to pay him approximately 8 percent of the deferred amount during the first six years. They used some of the money to add Mike Hampton, and made it to the World Series, but the real motivation was to use the savings to invest more money with Bernie Madoff. Sutter only played four forgettable years with the Braves before retiring after the 1988 MLB season. Its not discussed as often enough as the one the former All-Star has with the New York Mets, but its just as bad. You may occasionally receive promotional content from the Los Angeles Times. However, Donald Fehr, head of the baseball players union, the Major League Baseball Players Assn., said his group has studied unfunded liabilities and, at present, is not particularly concerned. This is an unsecured loan. After reaching the majors in 1976, he tied the National League record of 37 saves and later established a new one with a personal-peak 45 for the 1984 Cardinals. Those payments of $750,000 during his playing career and the $1.12 million that followed are only interest payments, Lewis points out. But the Braves could choose to put nothing aside and fund the payments out of operating expenses. If Sutter wants to continue pitching after that, a new contract, perhaps containing additional annuities, will be required, and Sutter could leave the Braves and become a free agent, even while collecting on the Braves annuity. It was widely reported that relief pitcher Bruce Sutter was to receive payments totaling $44 million over the next 36 years from his new club, the Atlanta Braves. When Bruce Sutter signed with the Braves before the 1985 season, he agreed to a deal for six years and $9.1 million. Bruce Sutter-Atlanta Braves-If you don't remember Bruce Sutter, that is ok. And the rest is history. Everyone should assume there is a risk, said Randy Hendricks of Houston, who recently negotiated contracts for Andre Thornton and Steve Trout. 61 votes, 18 comments. They released him after that season but paid him $3.2 million every year through 2014. Just a lawsuit, not Sutter going free agency. Sale gets $10 million of the deal 15 years after it was earned, so from 2035-39. The annual payments will be based on the theory that they have indeed put aside a total of $5.5 million on a pre-established schedule in the six years. The Boston Red Sox may be the overall kings of deferred money. Sean Keane is a comedian residing in Los Angeles. Jun 25, 2018. Of course, like the Mets, they lost a big chunk of that money investing with Bernie Madoff. That amounts to $31.5 million.. It involves the Atlanta Braves and Bruce Sutter. They wanted Bruce Sutter. Sutter, whose final payment comes in 2022, was able to turn $9.1 million into nearly $47 million thanks to interest. . The press estimated that with interest the account would pay Sutter $1.3 million per year for 30 years. A total of $4.8 million would be paid in salary over the six years and the other $4.8 million would be invested into a deferred payment account at. The splitter specialist signed a six-year, $9.1 million contract with Atlanta ahead of the 1985 season, but opted to delay the whole thing for decades. He also cited an article by sports columnist Dave Kindred in the Atlanta Constitution as an illustration of why Sutters contract is a good business investment by the Braves. A six-time All-Star, Sutter led the National League in saves for five years and won the 1979 Cy Young Award. When Albert Pujols jumped from the St. Louis Cardinals to the Los Angeles Angels of Anaheim, part of the deal was a ten-year, $10 million personal services contract with the team that kicks in after his retirement, or the expiration of his deal. In 2014, the SF Bay Guardian named him the best comedian in San Francisco, then immediately went out of business. Cash is king. By the time the 25th and final Bobby Bonilla Day has come and gone 13 years from now, the man will have turned the $5.9 million the Mets still owed after releasing him with a year left on his contract into a full $29.8 million in deferred money as part of a peculiar with-interest compensation structure. -- What happens if the Braves go bankrupt? Sutters agent, Jim Bronner of Chicago, described the deal as representing a risk, although he termed it an acceptable risk. The son of Howard and Thelma Sutter, he is the fifth of the six children in his family. The press estimated that with interest the account would pay Sutter $1.3 million per year for 30 years. It turned out to be a bargain, as Scherzer won two Cy Youngs and a World Series, finishing second, third and fifth, respectively, in the Cy voting in the other three years. The payments began in 1991, which means that Sutter has been receiving deferred payments for 30 years. Ken Griffey, Jr. really wanted to play in his hometown of Cincinnati, so much so that he took less money than the Seattle Mariners offered and deferred $12 million of his salary until after his nine-year deal ended. 12. There is little question that Sutter belongs with the highest paid players in baseball. Sutter also had a career earned run average of 2.83. Theyre also still paying Ubaldo Jimenez, J.J. Hardy, and Yovani Gallardo this year. Others challenged Bronners $13.6 million valuation. The contract extension he signed in 1993 included $3.5 million deferred, which was broken up into $250,000 payments through 2028. Which means the Mets will cut a $1.19 million check every July 1 until 2035, when Bonilla will be 72 years old. The length of the contract was absurd at the time, but so was the amount, given the context. (Remember when the Mets spent money?) A heavy-duty reliever who worked at least 60 games in seven different seasons, Sutter also proved capable of working multiple innings per outing. Two, the Braves have been the better run franchise for the last 30 years than the Mets. Sutter set a National League record with 45 saves in 53 chances last season. It's pretty impressive that Sutter is receiving more than $10 million a whopping 35 years after he announced his retirement. Deferred compensation has a very significant role. Back in 1985, according to Fansided.com, the HOF pitcher inked a deal for six years that was worth $4.8 million and another $4.8 million deferred at 13 percent interest. The famous one came when the Mets bought out Bonillas $5.9 million salary for 2000. It led Holliday and his agent, Scott Boras, to claim he was getting $17 million per year, and it gave the Cardinals extra salary flexibility. Bruce Sutter of the Atlanta Braves winds up for the pitch during a game in1985. According to the agent, these are the salient features of the Sutter contract: --In addition to the $4.5 million in salary, the Braves are committed to making 30 years of annual payments after the six-year salary period has elapsed, as if they had in fact established an annuity for Sutter. I was listening to a commentary about the Bonilla contract by Steve Philips, at the time the Mets General Manager, now a commentator on MLB Network on Sirius Radio. A total of $4.8 million would be paid in salary over the six years and the other $4.8 million would be invested into a deferred payment account at 13 percent interest that would pay Sutter $1.3. This is especially critical when Congress is moving on an almost annual basis to further restrict tax shelters. Sutters signing with the Braves turned out to be quite the investment for the 65-year-old, but their pairing led to very little on the baseball diamond. He posted 300 saves in a 12-year career with the Chicago Cubs, St. Louis Cardinals and . The Orioles are on the hook for a ton of future obligations beyond Davis. Hes the legend. And if inflation were to push interest rates to even higher levels of, say, 20%, the payments would rise to $68.2 million. He said he is worried about contracts that deal in unfunded liabilities and hinted that further action might be taken to restrict such deals. You only have to have (Braves owner Ted) Turner make payments for 12 years, and well have gotten more out of this than we might have had we taken the money all up front and tried to invest it ourselves, Bronner said. Once Cox came back over to the Braves organization after a successful stint managing the Toronto Blue Jays and former general manager John Schuerholz came over from the Kansas City Royals in 1990, the Braves stopped doing dumb things and started winning division titles like their lives depended on it. They wanted Bruce Sutter. The Orioles also will be paying Andrew Cashner until 2021, Mark Trumbo through 2022, and Darren ODay through 2023. Always free! Bronner said he is convinced there is little danger the Braves will ever be unable to fund this and other contracts. The $750,000 Sutter was paid each season were interest payments of about 8 percent on his contract. . Look up: The 32 most spectacular ceilings in Los Angeles, This fabled orchid breeder loves to chat just not about Trader Joes orchids, UCLAs senior trio has persevered in restoring the Bruins to national prominence, Hes taken the next step: How Boogie Ellis found his game as USCs point guard, Even after Gavin Lux injury, Andrew Friedman hints at patient approach with roster, Elliott: After trading away Jonathan Quick, Kings make more deals ahead of trade deadline, After four decades, trainer Ed Moger gets his first Triple Crown starter. So at least 2020 is the last year for one of the Mets long deals. and our Though he played his last game in 2019, the Laser Show didnt officially retire from baseball until 2021 but that didnt stop him from making base salaries of $4,637,737 in 2020 and $12,000,000 in 2021. Dennis Gilbert did a phenomenal job working #TheContract for Bobby Bo. -- Who has control over the account, if there is one? --The principal of the fund after the next six years, the $9.1 million whether it is a phantom fund or not, will go to Sutter or his heirs in 2020 at the conclusion of the contract, at which time taxes will have to be paid on it.