Zion's insurance policy

[Newhouser]

I see Duke is paying the $90,000 - is that standard practice among colleges? Does SU do things like that? I never knew the school could take out and pay for the policy - or did I read that wrong?

 

[Brooky03]

I think you read it correctly. I doubt its commonplace at most schools. But schools like Duke, KU, UK, and UNC probably all do this with their top projected OAD players. Might even be in the recruiting pitch.

The insurance company has to have a pretty strong belief the insured player is going to be drafted, to make it worthwhile for all parties. That alone limits the pool quite a bit.

I hope SU would do this if we ever land an elite recruit again, but who knows. Maybe it would come down to a player asking for it.

 

[Zepharus]

Just another way the playing field isn't level.. college athletics really stink now

 

[Newhouser]

Interesting - wonder what the odd ball OAD does like say Stewart at UW? Guess the new NBA 18 year old proposal makes this a moot point.

 

[dollarbill44]

I think you read it correctly. I doubt its commonplace at most schools. But schools like Duke, KU, UK, and UNC probably all do this with their top projected OAD players. Might even be in the recruiting pitch.

The insurance company has to have a pretty strong belief the insured player is going to be drafted, to make it worthwhile for all parties. That alone limits the pool quite a bit.

I hope SU would do this if we ever land an elite recruit again, but who knows. Maybe it would come down to a player asking for it.

I would think it's easy money for insurance companies and they would be willing to write these policies for every college athlete. I assume the policy language is pretty specific as to claim amounts and have plenty of exclusions to protect the insurer. I expect it's not easy to collect on a claim.

 

[HSPORANGE]

I see Duke is paying the $90,000 - is that standard practice among colleges? Does SU do things like that? I never knew the school could take out and pay for the policy - or did I read that wrong?

I was actually watching the local sports news on ABC 11 here in Raleigh last night and they were talking about the either 8 or 9 million dollar insurance policy on Zion. They were saying it was fairly common now for the school's to pick up the bill for college football/basketball stars insurance policies. They referenced that NC St had a similar policy on Bradley Chub in his last season at State.

 

[Brooky03]

I would think it's easy money for insurance companies and they would be willing to write these policies for every college athlete. I assume the policy language is pretty specific as to claim amounts and have plenty of exclusions to protect the insurer. I expect it's not easy to collect on a claim.

The draft is an important peice because it provides an established, reliable way to assess a player's value. It also provides a measuring stick.

Players unlikely to get drafted don't have much reason to take out a policy and most know the draft isn't in their future.

Insurers are of course making money on these deals, but I'd doubt they're super common.

 

[Newhouser]

So Duke took out policies on the entire Fab 4 this year? The football policy must be much more expensive.

 

[Brooky03]

So Duke took out policies on the entire Fab 4 this year? The football policy must be much more expensive.

Powerhouse football teams must pay a butt ton in premiums. Duke football probably doesn't because the combined value of all the guys that'll get drafted is probably lower than one NBA lotto pick's value.

 

[AlaskaSU]

I think you read it correctly. I doubt its commonplace at most schools. But schools like Duke, KU, UK, and UNC probably all do this with their top projected OAD players. Might even be in the recruiting pitch.

The insurance company has to have a pretty strong belief the insured player is going to be drafted, to make it worthwhile for all parties. That alone limits the pool quite a bit.

I hope SU would do this if we ever land an elite recruit again, but who knows. Maybe it would come down to a player asking for it.

This explains everything.

 

[dollarbill44]

The draft is an important peice because it provides an established, reliable way to assess a player's value. It also provides a measuring stick.

Players unlikely to get drafted don't have much reason to take out a policy and most know the draft isn't in their future.

Insurers are of course making money on these deals, but I'd doubt they're super common.

I didn't say they were common, just that insurers would write as many of these as they could. Also, while draft position is a reliable price setter, but where it gets messy is proving where a player would be drafted and how much money he lost because of the injury. Insurance companies are pretty savvy.

 

[Brooky03]

I didn't say they were common, just that insurers would write as many of these as they could. Also, while draft position is a reliable price setter, but where it gets messy is proving where a player would be drafted and how much money he lost because of the injury. Insurance companies are pretty savvy.

That's why I think only star players are doing these right now. They know their value pretty well, so the insurance companies can't low ball them too much.

 

[moqui]

I see Duke is paying the $90,000 - is that standard practice among colleges? Does SU do things like that? I never knew the school could take out and pay for the policy - or did I read that wrong?

glad for his sake that he is covered . . . but h.t.h. is that not considered an extra benefit unavailable to normal students?

 

[leftytg]

Schools can pay for loss of value insurance out of a Student Assistance fund the NCAA provides for every school. Otherwise, the athlete must purchase the insurance on their own.

Loss-of-value FAQs
How athletes get insurance and figure out what their bodies are worth

 

[UnknownOrange]

It's irrelevant. Policy only kicks in if he's picked 16th or later. That's not happening.

 

[Shark58]

UNC probably gets illegal insurance for some regular students too