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Angelos wants both Tex and Burnett?


JTrea81

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I'm curious, I know teams can purchase insurance for players they've contracted with. But can players really purchase insurance based on potential earnings?
Absolutely.

One such company that provides such insurance for players is HCC Specialty Underwriters. Here is a blurb from their web site:

Free Agency, Big Payday or Big Bust?

Anticipating the potential value of a multi-million dollar contract as a free agent, an NHL player began to wonder, "What happens if I become ill or get hurt before I can sign what should be a $50,000,000 contract?" Working with the player’s agent and his insurance advisor, HCC Specialty Underwriters was able to provide a Loss Of Value policy to the player, which protected his future value until such time as he signed that fat guaranteed contract.

http://www.asui.com/products/sports/athcasestud.htm

Lloyd's of London also sells insurance against loss of future earnings to athletes.

Finally, individual players also buy their own insurance, either before or after they are with a pro team, insuring themselves for the loss of future earnings. According to Michael Petersen, COO of Petersen International Underwriters, a coverholder of Lloyd’s based in California, young players may want to insure their careers in the longer-term for loss of future earnings in the event of an injury or illness.

Petersen said: “We give them cover 24 hours a day, on and off the field, whether it’s sliding into a base and injuring a body part, coming down with an illness or an automobile accident, all could be covered to protect loss of future earnings.”

http://www.lloyds.com/News_Centre/Features_from_Lloyds/Batter_up_Lloyds_steps_up_to_the_plate_with_baseball_cover_30042008.htm

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College basketball players do it all the time when they decide to return for a year rather than jump to the NBA.

Of course, the policies are for far less than their potential earnings. A handful of millions, not dozens.

I've heard of disability policies but they don't cover injuries do they?

I.e. Marakakis gets a policy and tears an ACL... It's not a disability injury but theoretically could cost him tens of millions... Is that kind of thing coverable?

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I've heard of disability policies but they don't cover injuries do they?

I.e. Marakakis gets a policy and tears an ACL... It's not a disability injury but theoretically could cost him tens of millions... Is that kind of thing coverable?

I'm pretty sure thats how they work. Basically the same weird things like the Riverdance guy insuring his legs. Here's some funny examples.
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I've heard of disability policies but they don't cover injuries do they?

I.e. Marakakis gets a policy and tears an ACL... It's not a disability injury but theoretically could cost him tens of millions... Is that kind of thing coverable?

Yeah, people are insured against potential. IIRC, Peyton Manning was insured for some ridiculous amount of money if he wasn't a top 10 pick in the draft. Insurance is nothing more than an agreement between two parties to diminish risk.

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Yeah, people are insured against potential. IIRC, Peyton Manning was insured for some ridiculous amount of money if he wasn't a top 10 pick in the draft. Insurance is nothing more than an agreement between two parties to diminish risk.

Is it really that loose? Could a College Junior who is a top ten pick insure against poor performance?

I was under the impression that these policies paid out if a player got injured and was never able to sign a professional contract or prevented from ever playing again. I had no idea that it was possible to insure against injuries that don't prevent you from playing again but may diminish the size of a potential FA contract.

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It's almost certainly bull****, but a ex-Torontonian who works at a grocery store in Maryland emailed me at Drunk Jays Fans the other day, to say that he had bagged Burnett's groceries, and after asking him for an autograph, AJ obliged and then told him he was going to be an Oriole next year-- for whatever that's worth (which should be very, very little).

http://www.mlbtraderumors.com/2008/10/orioles-may-exp.html#comments

While it's almost certainly a load of crap, the eternal optimist in me can't help but to me... well, optimistic. :D

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Is it really that loose? Could a College Junior who is a top ten pick insure against poor performance?

I was under the impression that these policies paid out if a player got injured and was never able to sign a professional contract or prevented from ever playing again. I had no idea that it was possible to insure against injuries that don't prevent you from playing again but may diminish the size of a potential FA contract.

I'm not sure what the legal restrictions are on a state or even league level. However, I could theoretically buy insurance that says I'll make it home alive tonight. The risk/reward just has to work for both parties. Insurance companies certainly wouldn't do that for me, but in that vain they do offer things such as wrongful death insurance that they determine are actuarially sound.

Most of the time you need a statistically sizable market for something like this. However, when the risk is minimized to a valid degree, sure, they'll do it.

So, when Peyton Manning was the best QB in college, had all of the prototype tangibles and was projected by all to be a top player in the draft, it made sense for an insurance company to offer a policy.

With all of that mumbo jumbo above, I just googled this topic and couldn't quickly find any reference to Peyton Manning's insurance.

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Guh? Gillick is the one who signed Drabek and Kamieniecki, and brought Ponson to the majors for the first time. In fact, Kamieniecki was a mainstay in the O's rotation in their wire-to-wire season in '97. Bad examples there.

Yeah, he did make those deals, but he wasn't given the chance to correct his mistakes. Kam did have a decent 97, but the following two seasons weren't that good.

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