IRS PALS (Property Appraisal and Liquidation Specialists) has auctioned off Darryl Strawberry’s contractual right to receive payments under his deferred compensation agreement with the New York Mets.
Strawberry owed a tax debt for the years 1989, 1990, 2003 and 2004. The District Court for the Northern District of Florida ruled last month that the U.S. had valid and subsisting federal tax liens against all property and rights to property belonging to Strawberry, including the right to receive payments under the deferred compensation agreement (see IRS to Auction Darryl Strawberry’s Deferred Comp).
The minimum bid for the sale was $550,000, while the winning bid was $1.3 million. The winner, who wished to remain anonymous, will receive $8,891.82 a month for the next 18 ½ years.
“Given a sale price of $1.3 million, the annualized rate of return on the investment for the winning bidder is about 4.86 percent,” said actuarial analyst Brian Haubert.
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