Could MU Get Insurance To Encourage Henry To Stay Another Year?

[Tugg Speedman]

First a story for background ...

http://www.nytimes.com/2015/05/09/sports/ncaafootball/insurance-doesnt-eliminate-risk-for-top-college-athletes-who-forgo-draft.html?_r=0

Loss-of-value insurance has been available to any college athlete who could afford it, but colleges have recently begun paying for premiums out of their student assistance funds, which the N.C.A.A. allows. Florida State reportedly paid for a policy for its Heisman Trophy-winning quarterback, Jameis Winston, who was the No. 1 overall pick this year. Georgia paid for a policy protecting running back Todd Gurley, who was drafted 10th. After word surfaced that Texas A&M had paid for Ogbuehi's, Oregon paid for policies for several players, including the Heisman winner Marcus Mariota and cornerback Ifo Ekpre-Olomu.

To the extent that loss-of-value insurance helps persuade elite athletes to return, it is a boon to their teams, which get to use their talents for another season. But Ogbuehi's story highlights the perils of top athletes who extend their college tenure, during which they may be compensated only by a scholarship. In many cases, they cannot enter professional leagues because of age restrictions. N.C.A.A. rules barring agents and requiring players to declare for drafts soon after their seasons end make a tough decision even more difficult, some observers say.

The insurance is available for several other college sports, notably basketball. The Kentucky star Nerlens Noel had it but reportedly did not try to collect after he tore his A.C.L. and was drafted sixth over all. But given football's especially high injury rate, in college it is most relevant to that sport.

In January, the five autonomous conferences voted to allow athletes to take out loans with future earnings as collateral in order to pay for loss-of-value insurance — something they were already able to do for disability insurance, which protects against the sort of injury that would preclude a future as a professional athlete (neurological trauma is an example).

No college player is known to have collected on loss-of-value insurance. Marqise Lee, a Jacksonville Jaguars wide receiver who played at Southern California, has sued the insurance giant Lloyd's of London over his $5 million policy. His lawyer declined to comment.

"If it's highly unlikely to actually collect, then maybe once again this becomes a great benefit people talk about that really doesn't enhance the welfare of the student-athlete," Zola said.

Athletes' luck with loss-of-value insurance could change soon, however. Ekpre-Olomu, the Oregon cornerback, had a loss-of-value policy purchased for him by the university, Athletic Director Rob Mullens said. The policy was worth $3 million, with Ekpre-Olomu slotted for the late first round, according to ESPN.

Ekpre-Olomu tore his A.C.L. in December and was drafted in the seventh round.

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Can anyone enlighten on this subject?  All I know is basically what is above,  What are the limits, what are the premiums?

Marquis Lee had a $5 million policy.  Insurance benefits are tax free.  That same size policy would net Henry the same amount of money, after tax, as a rookie contract getting picked around 10th. 

If risk of injury is the reason he would leave, is this the answer to entice him to stay?

The problem is showing a loss of value from an injury as opposed to bad play causing one's stock to drop.  That is why Noel did not collect, even though he tore his ACL, he was drafted 6th.  What would he have been drafted if healthy?  6th, meaning their was no loss of value.  No one knows the answer and Noel correctly chose to take his 6th pick guaranteed money and move on.  Otherwise he could have argued he would have been, say, a top 3 pick, if healthy, however one proves such a thing, so his insurance contract owes him the difference between 6th pick and top 3 pick money.

I can see where proving loss of value over injury is very hard, Where the insurer (Llyods of London) would argue it is because you played poorly, or was never that good in the first place, and the injury had nothing to do with it.

Has MU offered HE an insurance policy if he decides to return?  Anyone know anything about this?

[4everwarriors]

You're kiddin', right, hey?

[kmwtrucks]

I'm sure MU has offered to pay if he wants to stay.  Why would you say really? 

[Benny B]

Proving loss of value over injury is difficult because....

wait for it....

Loss of value over injury is extremely rare.  Ekpre-Olomu is the first legitimate case because he clearly fell - at least - several rounds.

Nerlens Noel being Top 5 seems easy, but is a difficult case to make.  Elite players often fall a few slots, that's natural; hell, look at Aaron Rodgers... he fell to the late first round and he wasn't injured at all. 

Lee's case is laughable... All he did was twist his knee, and only missed a couple games.  He was a late 2nd rounder; hard to make any argument that had he been healthy he was a top pick in the first round.

[GGGG]

This has been discussed in other Henry threads.  But of course Heise has to start a new one...

[Tugg Speedman]

I don't read very word here like you do

[GGGG]

I don't read very word here like you do

Maybe you should spend less time talking and more time listening.