Originally posted by matt49er:
Originally posted by Travisty13:
Originally posted by matt49er:
Originally posted by sfout:
Smart guy. More and more players will start doing this because of the rookie wage scale. He's essentially getting paid for 2 years worth of a minimum salary deal even after taxes.
I agree it was a smart move, I wonder how he paid the premiums, I'm sure it had to be high considering they were insuring a football player against injury. I wonder if insurance law allows for payment to be deferred to when he earns an NFL paycheck or something?
Teddy Bridgewater did the same thing. http://nfl.si.com/2014/04/29/teddy-bridgewater-insurance-policy-2014-nfl-draft/
After purchasing a $10 million total disability injury policy, per the report, Bridgewater supplemented it with $5 million in loss-of-value insurance. That policy is connected directly to the injury policy, meaning the only way he can collect from a draft fall is if it's because of being hurt or ill.
The loss-of-value policy cost Bridgewater less than $20,000, and that's when he was projected to be a top-five pick. According to the report, he'd stand to start collecting money if he falls out of the top 11. From there, every slot Bridgewater falls, he could add hundreds of thousands of dollars from the policy.
http://sports.yahoo.com/blogs/shutdown-corner/teddy-bridgewater-could-collect-on-insurance-policy-if-he-slides-in-nfl-draft-134454515.html
WOW! Insurance companies betting on draft boards now lol. I still want to know how they pay for it. Winston had to steal $32 worth of food but these guys can pay 20K+ for insurance? It's got to be a deferred premium.
There was an article explaining it awhile back. If I recall it can be done multiple ways.
in college insurance
a. deferred premium as you say
b. players simultaneously take out loans and insurance policies
draft season policies (more leverage, go to insurance companies with the draft advisory board's grade to boost value of the policy)
c. injury only insurance from the day they declare up until the draft that agents pay and the player pays them back once they are drafted.
[ Edited by sfout on May 12, 2014 at 3:01 PM ]