Given the capital environment at the time, Mets' deal with Bobby Bonilla wasn't as bad as the business press would have you believe.
Go ahead, run the numbers yourself. +$5.9M in Y0, $0 Y1-Y10, -$1.2M Y11-Y35. Rf was 6% on the 30-year in 2000, and Rm was pretty steep given the SP had four great years in a row leading up to 2000. Set a beta of 1.2-1.3 since this is an entertainment business, and it's actually an NPV positive transaction. Even if you mark the discount rate down to 8-9%, it's still NPV positive.
Deal didn't work out as well in practice, but that's mainly because of the weak market in the early 2000's. When the deal was put in place, the numbers made sense. Mets still suck though.
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