TampaBuckeyes
Assistant Coach
Do the insurance policies cover the difference between contract value of reasonably expected draft position and where you end up?That insurance policy still isn't worth the risk.
Jake Butt got $400K from his policy, earned another career $2.6m from the Broncos as a fifth rounder, and was out of football after a whole career of eight games following a repeat of the injury in 2019 (fifth rounders are a lot more expendable than second rounders).
Had he skipped the Orange Bowl and got drafted at the bottom of the Top-50 picks (mid second) where he was frequently projected, he'd have earned over $3m guaranteed and likely pockets another $2-3m in game checks if he simply remains a healthy scratch behind Heuerman.
Injuries, talent, bust, whatever you want to call it, all things being equal and only having one contract to go off of, playing in the Orange Bowl conservatively cost him over $3m in lifetime earnings. Arguably way, way more if he enters the NFL on two healthy knees and makes it to the second contract.
If so it’s pretty big for anyone expected to be a first rounder or high first rounder, considering Butt could have ended up anywhere from late 2-4. The 4 year salary drop between late 2 and late 5 is 1.5 mil at most. His insurance policy was for difference between mid 3rd and he collected over 500k. Between mid 3 where he probably would have ended up and 5 is about 1 mil. Signing bonus a few hundred thousand different.
Conservatively I would say that playing in the bowl game cost him a few hundred thousand in total salary. Such as if he ended as a flop anyhow or was still knocked out for the injury he sustained in the nfl. He reaggrivated the acl twice and was finally knocked out by a hamstring.
On the high end it could have cost him tens of millions if he turned into a pro bowler, but who knows.
3 mil total in earnings over 4 years is still life changing and typical earnings for most day 2 picks.
I think the policies are a great idea and definitely think the schools should buy policies for anyone expected to be in the top 3 rounds.
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