Insurance a factor signing A-Rod

[ElToro75]

Interesting article by Buster Olney about how insurance comes into play on signing A-Rod, or for that matter any high salaried player, to a longterm deal. I didn't realize that the insurance would only run in three year terms.

An executive with a team that will not be involved with the A-Rod bidding offered this insurance primer, if A-Rod were to sign a 10-year, $300 million contract:

• You could get insurance for only the first three years of the deal and would need to work with at least two companies. After the first three years of the deal, you would need to reapply for another three years.

• The maximum amount you could get insured probably would be 50 percent of A-Rod's salary. In other words, if A-Rod made a total of $90 million in the first three years of his deal, you could get insurance for about $45 million.

• So, at the outset of the contract, approximately $250 million of his $300 million would remain uninsured.

$6MM premium for 3/45.

Didn't the FO insure Albert Belle when they signed him? Does anyone know if the same things applied then, regarding the term of the policy?

[Mark Carver]

No, it was different than... pricing and maximum lengths of insurance policy had changed when companies started to make big payoffs for players like Belle and Erickson.