Each month, the NY Mets shell out $9,000 to an unexpected recipient, a former player’s pension initially intended for Darryl Strawberry.

In a unique twist of fate, former baseball star Darryl Strawberry’s deferred salary from his days with the New York Mets is not going to him or his family, but to a stranger until 2033. The circumstances surrounding this financial arrangement raise eyebrows and highlight broader issues related to deferred payments in sports contracts.

The Deferred Payment Dilemma

Darryl Strawberry, who dazzled fans with his talent on the baseball field, signed a contract with the Mets in 1985 that involved deferring a substantial portion of his salary. This setup has led to an unusual outcome: beginning in 2004, the Mets initiated monthly payments of approximately $8,891.82 to an individual who has no connection to Strawberry. This unexpected beneficiary is set to receive these checks until August 2033, amounting to nearly $1.98 million in total.

Strawberry, a name synonymous with the Mets during the 1980s, earned a significant $30 million throughout his career. However, financial mismanagement has overshadowed his achievements. His lucrative deals included a contract in 1985 for $7.1 million, which led him to defer 40% of his final season’s salary in favor of growth through interest accumulation.

Financial Turmoil and IRS Intervention

Despite earning additional millions in subsequent contracts, Strawberry faced considerable financial challenges. A history of tax evasion — including an astonishing $542,572 in underpaid federal income taxes — resulted in the IRS seizing much of his deferred payments when they began in 2004. This complex situation intensified during his 2006 divorce, where a judge ruled that the payments were subject to IRS liens, further complicating Strawberry’s financial landscape.

In 2015, the IRS opted to auction off the remaining rights to the annuity, which garnered significant interest from bidders. An anonymous buyer ultimately secured the rights for $1.3 million, a figure that, on the surface, may seem imprudent against market averages but made sense in the context of prevailing low-interest rates at the time, ensuring a secure return.

As each month rolls by, nearly $9,000 is wired from the Mets to an unassociated recipient, a peculiar testament to the intricacies of deferred contracts in sports and a striking cautionary tale for players about the importance of financial management.