College Player Files $3M Claim with Lloyd’s for Drop in NFL Draft

By Kavitha A. Davidson, Bloomberg View | October 6, 2015

  • October 6, 2015 at 1:52 pm
    Fanucci says:
    Like or Dislike:
    Thumb up 1
    Thumb down 1

    This is absolutely a joke. The player knew the risks of playing football, and suffered an injury. Suing because he fell from the first round to the seventh round. All this boils down to is how many millions they can make. Sports contract are totally our whack, and this just turns me off each and every year. One day we the fans are going to say enough is enough.

    • October 6, 2015 at 2:03 pm
      Jack Kanauph says:
      Like or Dislike:
      Thumb up 1
      Thumb down 1

      Read the article Fanucci. He is not suing, he is filing a claim on the insurance policy that was purchased to cover this event. The college is protecting him and kids like him by getting this insurance. Sadly, many kids who play college sports think they’ll make the pros and cash in, and therefore do not take advantage of the free education.

      • October 6, 2015 at 2:23 pm
        Agent says:
        Like or Dislike:
        Thumb up 1
        Thumb down 1

        Jack, it sounds a lot like an inducement for the player to attend the school to me. Inducements like this to a college player might be illegal to a lot of people. I can see sports contracts worded to remunerate a player for injuries in their guaranteed money, but not a college kid unless he wanted to take it out himself.

        • October 6, 2015 at 3:05 pm
          Confused says:
          Like or Dislike:
          Thumb up 1
          Thumb down 1

          Stop talking about guaranteed injury money – that is not what this case is all about. The kid had a policy that said he is entitled to “x” amount of money if he wasn’t drafted in the first couple of rounds. He wasn’t drafted until the later rounds, thereby triggering the contract terms. It’s perfectly legal and the kid can be 100% healthy and get paid from this contract.

  • October 6, 2015 at 1:53 pm
    Charles Smith says:
    Like or Dislike:
    Thumb up 1
    Thumb down 1

    I’ve been in the business a long time, and it still amazes me what you can get coverage for. You can really buy coverage to compensate because you didn’t place high enough in the draft? Sounds about as ridiculous as the adult movie performer who told me she had certain parts of her body insured. I’ll leave that part to your imagination!

    • October 6, 2015 at 2:46 pm
      Agent says:
      Like or Dislike:
      Thumb up 1
      Thumb down 1

      Back in the day, Jayne Mansfield had her breasts insured for $1mil and Betty Grable, her legs for the same amount in case something happened. Jayne Mansfield was decapitated in a bad auto wreck so I doubt if anything was paid on that.

      • October 6, 2015 at 3:06 pm
        Rosenblatt says:
        Like or Dislike:
        Thumb up 1
        Thumb down 1

        Jayne Mansfield was not decapitated. That was an urban legend proved false a long time ago. Please stop spreading misinformation.

        • October 7, 2015 at 4:49 pm
          Agent says:
          Like or Dislike:
          Thumb up 1
          Thumb down 1

          Rosenblatt, I stand corrected and only went by what the papers reported when the accident happened. She only lost half her head with her brain exposed. Feel better now?

      • October 6, 2015 at 5:36 pm
        Charles Smith says:
        Like or Dislike:
        Thumb up 1
        Thumb down 0

        The part I’m speaking of wasn’t legs or breasts. And I heard the same about Jayne Mansfield.

    • October 12, 2015 at 10:38 am
      Dave says:
      Like or Dislike:
      Thumb up 1
      Thumb down 0

      Charles, understand that the coverage applies only when an insurable event (an injury to the ballplayer) causes him to drop in the draft. If Aaron Rodgers had such a policy purchased on his behalf by his college he would not have been able to file a claim for dropping so low in the draft as his dropping had nothing to do with an injury, but had to do with so many teams not seeing his worth as a QB except for the Green Bay Packers. Go Green Bay 5-0!

  • October 6, 2015 at 1:57 pm
    Questionning says:
    Like or Dislike:
    Thumb up 1
    Thumb down 1

    The insurance policy was designed specifically for this purpose. The insurance carrier also knew the risks of playing football and determined a premium based on that risk. It is a contract between the two parties. Don’t cry foul because one of the parties elects to enforce the contract.

    • October 6, 2015 at 3:10 pm
      Rosenblatt says:
      Like or Dislike:
      Thumb up 1
      Thumb down 1

      Thank you for being the voice of reason, Questioning. I don’t understand the issues people have with what went down here. This is clearly a valid contract and both sides went in with open eyes, so to speak. Getting upset at the kid for filing a claim here is akin to getting upset that your homeowner’s policyholder placed a claim for their scheduled jewelry which was stolen.

      • October 6, 2015 at 4:07 pm
        dot_hemath says:
        Like or Dislike:
        Thumb up 1
        Thumb down 1

        I don’t have an issue with either the policy or the fact that the kid collected on it. I do take issue with who paid for it. The article says the premium, $24,000 in this case, comes out of the NCAA’s Student Assistance Fund, used to aid student-athletes “in meeting financial needs that arise in conjunction with participation in intercollegiate athletics.” Providing that coverage seems like a stretch to me.

        • October 6, 2015 at 4:14 pm
          Rosenblatt says:
          Like or Dislike:
          Thumb up 1
          Thumb down 1

          Wow, I must have missed that, dot_hemath. If that’s accurate, I’m with you — paying for that coverage out of the NCAA Student Assistance Fund is absurd. I guess if the NCAA won’t let colleges or boosters pay “student” athletes anything, clearly it’s (hypocritically & sarcastically) okay for the NCAA to basically give these kids guaranteed money anyway – either via draft bonuses from the draftor if they’re drafted in the early rounds, or through this kind of policy. Seems very shady, as is most of the NCAA’s actions!

        • October 6, 2015 at 4:52 pm
          integrity matters says:
          Like or Dislike:
          Thumb up 1
          Thumb down 0

          I agree with you, too, dot.

          No problem on the insurance and claim. Both sides entered the agreement knowing what they were getting into.

          “Who” pays for the policy is another issue. I am sure the “non-stars” are not getting reimbursed if they purchased a policy.

          I’m curious when this policy is actually purchased?? Is it the junior or senior year? Is the premium an annual premium?

          I also wonder if there is a “quid pro quo” understanding between the college and the player for the player to “donate” certain amounts back as an alumnus.

          • October 6, 2015 at 5:03 pm
            InsGuy says:
            Like or Dislike:
            Thumb up 1
            Thumb down 0

            This isn’t the whole story. There aren’t enough details for us insurance folks…It goes on to say that his premium could be $50K-$60K.

            This suggests 2 things to me. The $8K for $1M in coverage may be an average the school pays on a group policy for all players it’s covering, AND that it may be subject to audit once a claim is filed.

  • October 6, 2015 at 5:16 pm
    InsGuy says:
    Like or Dislike:
    Thumb up 2
    Thumb down 0

    From a purely ‘potential future earnings’ claims in a normal injury claim, I think the $3M claim amount is the most interesting aspect of this article.

    Unless there’s a specific limit, seems to me, if he dropped from 1st Round to 7th Round, due solely to this injury (and not some bonehead move of stealing some sample cologne & underwear from a dept store :D), the injury could easily cost him $30M in terms of a rookie contract.

    • October 7, 2015 at 4:52 pm
      Agent says:
      Like or Dislike:
      Thumb up 2
      Thumb down 1

      The player you referenced was a Dallas Cowboy who stole cologne and underwear and was on a minimum NFL salary.

      • October 8, 2015 at 11:03 am
        Stan says:
        Like or Dislike:
        Thumb up 1
        Thumb down 2

        Agent, youre out of your element old man. Stick with hating young people and minorities, leave sports to the real men.

        • October 8, 2015 at 3:58 pm
          james says:
          Like or Dislike:
          Thumb up 2
          Thumb down 0

          Not sure where he referenced minorities??

        • October 12, 2015 at 10:52 am
          Agent says:
          Like or Dislike:
          Thumb up 2
          Thumb down 1

          There is one thing for sure Stan, you certainly aren’t one of the real men.

  • October 7, 2015 at 3:28 pm
    Mr. Obvious says:
    Like or Dislike:
    Thumb up 1
    Thumb down 0

    I don’t have a problem with the colleges paying for these policies, in fact there should be coverage for all athletes that protects against future earnings if injured, not just draft status. The $$ should come from the revenue the NCAA makes from the huge TV contracts they now have for football and men’s b-ball. Most of these kids will never make a dime from their sport, yet are risking permanent impairment. Yes, they know the risks, but the reward is highly favoring the NCAA and universities at this point, unless you are one of the few talented enough to make it to the NFL or NBA.

  • October 12, 2015 at 10:59 am
    Dave says:
    Like or Dislike:
    Thumb up 1
    Thumb down 0

    This story gets to the whole debate about whether players should be amateurs or should be paid based on all the money the universities make off of them. I find it ironic that colleges would get punished for giving an athlete a free T-Shirt but it’s totally legitimate for them to buy a policy such as this which cost several thousand dollars and can pay off in the millions. The NCAA has a mess on their hands and I don’t see it going away until they just out and out pay these guys.

    • October 12, 2015 at 2:43 pm
      InsGuy says:
      Like or Dislike:
      Thumb up 1
      Thumb down 0

      Oh, don’t forget about the $100K tuition, room-board, meals, books they get when attending on a full scholarship. Talk about Yale, Harvard, Stanford, etc. that number likely goes way up. How is that not being “compensated” for playing the sport.

    • October 12, 2015 at 2:45 pm
      Ron says:
      Like or Dislike:
      Thumb up 1
      Thumb down 1

      Dave,

      You don’t think the NCAA will have a whole other mess if they start paying the athletes?

      I would like to see them loosen some of the rules regarding incentives, but paying them will not solve the problems.

      When you have billions of dollars flying around, there is no escaping problems.

      • October 13, 2015 at 9:17 am
        Dave says:
        Like or Dislike:
        Thumb up 1
        Thumb down 0

        Agree with your comments Ron. I am truly conflicted on this one. I don’t like the idea of “paying” student athletes to play their sport and I’m not to happy with the colleges reaping millions off the backs of these guys with little compensation for the athlete’s efforts. I don’t know if paying the athletes is the right idea or not but I do know the current state of affairs sucks. This is one of this problems for which I do not know a feasible solution and would be glad to hear ideas. I fear however that there exists no easy tor totally fair solution.

        • October 13, 2015 at 12:50 pm
          Ron says:
          Like or Dislike:
          Thumb up 1
          Thumb down 0

          Dave,

          I would rather see more of that money go to reducing tuition for those student athletes without scholarships. In my opinion, free education, room, and board is sufficient compensation for 99% of the athletes that get full rides.

    • October 12, 2015 at 2:53 pm
      Agent says:
      Like or Dislike:
      Thumb up 1
      Thumb down 0

      Dave, Intercollegiate athletics used to be about providing a college education to a student/athlete so they could be a success in life after college. It is a very expensive operation to provide that now and many athletes don’t make it 4 years as it is now. If they have talent, they go about 2 years and then try the pro ranks. If they don’t make it, they end up with menial jobs since they didn’t learn anything useful while in college.

    • October 12, 2015 at 5:58 pm
      Agent says:
      Like or Dislike:
      Thumb up 1
      Thumb down 0

      Dave, I remember some months ago that the Northwestern football team tried to unionize. It didn’t go anywhere, but they tried so they could get more benefits. Sounds just like Illinois.

    • October 13, 2015 at 9:40 am
      Agent says:
      Like or Dislike:
      Thumb up 1
      Thumb down 1

      Dave, I have a great idea. Many people complain about how much money schools make off their athletic programs. How about the schools reduce tuition to the regular students? So many kids who are not athletically blessed like Stan have to take out loans they cannot repay because it is so expensive to go to school. The NCAA could give grants/scholarships to thousands of students each year. Does that sound like a plan?

      • October 13, 2015 at 10:09 am
        Rosenblatt says:
        Like or Dislike:
        Thumb up 0
        Thumb down 1

        Agent – why would the National Collegiate Athletic Association give out non-athletic scholarships? That’s like saying you think Jiffy Lube should give out more coupons for home solar panels – that’s not the business they’re in.

        • October 13, 2015 at 10:21 am
          Agent says:
          Like or Dislike:
          Thumb up 1
          Thumb down 0

          Rosenblatt, I think it is called “discretionary” spending and would be a good thing and improve their image. Why do PGA tournaments give their proceeds to hospitals and other worthy organizations when the organizations have nothing to do with the game of golf? The PGA Tour has given over $1 Billion to worthy organizations over the years.

  • October 12, 2015 at 2:19 pm
    Michele Russo says:
    Like or Dislike:
    Thumb up 1
    Thumb down 1

    I am completely amazed at some of the comments here. The only thing for certain is that not many read and understood the entire article. Easy to see how misinformation is so easily spread.

  • October 12, 2015 at 2:41 pm
    Observer says:
    Like or Dislike:
    Thumb up 0
    Thumb down 1

    I like the idea of the colleges purchasing the policy. The school could be liable for the injury and its consequences. This is a way of transferring their liability to another party. If the player did not participate in athletics and was hurt at a school function with loss of future earnings, the school might be forced to reimburse for loss of future earnings.

    I look at it in the same manner as a child getting hurt participating in a school activity and the injury having consequence in their future life. In many instances, the school must pay.



Add a Comment

Your email address will not be published. Required fields are marked *

*