IU insuring Coleman

[YOTHN]

I'm sure most have now heard about the DB from Oregon (possibly the best in the nation) getting hurt and out for some time? Apparently he was insured by the University. That got me thinking about things with IU and just the NCAA as a whole.

What is different than paying a player straight up or making $10's 100's of thousands of dollar premium payments on the players behalf to an insurance company that locks in an equally agreed upon value? I feel like it's great for the player and I'm all for it but it sure makes the NCAA look like a hypocrite (unless I'm missing something). Are there stipulations on a value a university can place on a student? What about the stipulations within the insurance policy that determines a payout is granted? I assume there is a max limit set and it can only be for injuries or else IU could set get a 2 million policy on Coleman that says if he isn't a top 5 pick that it pays out. Sure the premium might be almost the value of the policy payout but it would be worth it to the university simply because of the publicity. So obviously that can't be possible but I'm curious to know the rules and legislation around that.

In this case, one would asume IU is offering Coleman a large insurance policy for injury purposes? If so, I think the option of staying could be quite enticing and possibly worth the investment for not only Coleman but IU.
This post was edited on 12/22 9:47 AM by YOTHN

 

[turney333]

My understanding is that the NCAA provides low or no interest loans with a deferred payment plan to cover the cost of the insurance premium, which can easily be repaid when the player does go pro or in the unfortunate instance of an insurance payout.

The amount available is corresponds to the player's anticipated rookie contract based on their projected draft position with a max of 2 million (a high second round contract), which has a premium of 10-15k

Other than help facilitate setting up the policy, I don't think the university's are all that involved and certainly don't get paid themselves.

 

[YOTHN]

This article disagrees. It says the family purchased the policy and Oregon reimbursed them for their premiums.

http://www.goducks.com/ViewArticle.dbml?ATCLID=209610114

This post was edited on 12/22 1:07 PM by YOTHN

 

[missionale]

The NCAA is damned if they do, damned if they don't

Years ago the NCAA was criticized for not helping kids who wanted to stay in school, but were fearful of getting hurt..so they changed the rule to give those players options..now they are being hypocritical because it amounts to paying them

The insurance policies are common, both in college and the pros..for athletes they usually only cover career ending injuries. But pro teams can get them to cover salaries for missed seasons. Thats why you see teams shut down players, they don't want to lose the insurance payments.

I have never heard of a university getting insurance money for injured players

 

[YOTHN]

Re: The NCAA is damned if they do, damned if they don't


I'm not damning the NCAA for going one way or the other. I am damning them for claiming not to pay players and then allowing the universities to do just that. Heck, I am all for the payment of players but I wasn't looking to get into all of that. I want to bring the topic on the table for discussion to help us all better understand the ramifications of allowing this to take place. It's a massive benefit to players. It's truly a pay for performance measure that no one is really talking about.

 

[missionale]

how is the university paying them?

The injury insurance is just an expansion of the medical insurance that athletes were already recieving. Schools are paying the premiums not the payouts.


Compared to tuition and room board for all athletes, a very select few athletes getting expanded insurance policies hardly qualifies as a "massive benefit" to athletes. I believe Ogunleye took out a policy and came back for IU, only to blow out his knee, but since it wasn't career ending he didn't get paid. The fact that it took him from being an early round draft pick to undrafted, costing him millions, didn't matter...how is that a massive benefit?

But it sure looks like you are damning them. When a player got hurt, and ended his career, the ncaa was hammered for using and disposing of athletes. So The ncaa saw the area of concern and addressed that area, but instead of applauding the ncaa for acting on behalf of the athlete they are being critiqued for being hypocrites for not doing more.?

 

[YOTHN]

Re: how is the university paying them?


The NCAA is saying they don't want to pay players but this is exactly what this does for them. And again, I'm all for the NCAA paying players and specifically for this type of payment. I am criticizing NCAA for denying that they should pay players to look like self righteous amateur sports when in reality they are allowing just that.

The insurance policies aren't merely tied just to career or even season ending injuries. These policies are now paying out according to how the draft plays out. The parameters being set are saying if they simply aren't a 1st round pick, the insurance company pays the player a set amount; therefore, guaranteeing a player will make a certain amount of $. All of this is regardless of whether or not the player is injured and at no cost to the player.

That is no different than the University offering to pay directly to the player the said amount of money under those same stipulations. Why even go through an insurance company? The only difference is the money looks cleaner when it's going from the university, to the insurance company, to the player (if the player doesn't earn his way up to a top tier pick) instead of just going from the university to the player (if the player doesn't earn his way up to a top tier pick).

I say this is a pay for performance because only the best players who have a chance of getting drafted will be the ones who will get this offer.




This post was edited on 12/22 4:10 PM by YOTHN

 

[missionale]

You are making gigantic leap

I have seen where the insurance covers injuries, I haven't seen it cover not being drafted for non injury reasons, The UO players, the A&M tackle and Winston from what I have read are all based on injuries hurting draft position. The ncaa covering the costs just started this year. A&M found the loophole and UO is reimbursing their players.


Paying insurance premiums is nothing new, athletes have had medical insurance from the ncaa for sometime. The ncaa has a fund for unforeseen costs for athletes, that's where the money is coming from. The money comes from the ncaa not the school. It comes from the Student Assistance Fund, which gives money to athletes to cover unforeseen expenses like flights home for funerals..but according to your line of thinking that is being hypocritical as well. Like I said damned if they do damned if they don't

technically paying any bill for someone is the same as paying them a salary. The question I can't figure out is, why is the ncaa covering insurance bills different to you than them paying tuition costs or rent? There are future income considerations from a free education, just like their is a possible future income from insurance.

I'm sure you will have to show a need for the insurance to get help from the ncaa, and someone like Nick Stoner(example only) doesn't need it, but someone like TC needs it...need based payments isn't exactly new. Why should the ncaa pay for insurance on athletes who don't have a shot at being drafted? I at least hope they aren't covering the costs for rich kids, but there are not too many families that can afford $60,000 policies