There are a couple ways of handling these deferred compensation payments. One way is to purchase an annuity or similar investment device at a lump sum, and then 5 or 10 or 20 years down the road, the annuity makes the guaranteed payments (ie. $250k a year in Saberhagen's case). It's a good bet for both parties: it's less in total cost for the Mets, and guarantees future income for the athlete. It has been speculated, however, that the Mets were using Madoff as the investment vehicle to make those future payments. If true, that's a bigger problem, and would mean that they have to come up with the cash each year to those players rather than having already paid for it. -- Also, I think it's probably unfair to stick that on Phillips; wouldn't those contracts have been Al Harazin or Joe McIlvane-era?