By Ryan Mayer, CBS Local Sports
According to a report from Dennis Dodd of CBSSports.com, former Oregon cornerback Ifo Ekpre-Olomu is going to be the first player to collect on insurance covering a loss of draft value. The insurance policy is worth $3 million which the corner will claim based on his drop in the draft following an ACL injury at the end of last season.
Keith Lerner, the man who underwrote the policy told Dodd last night that the claim is close to being paid.
“Lerner added the claim should be paid in the next 30-60 days. Ekpre-Olomu was the 241st player taken in the draft by Cleveland. Loss of draft value claims are paid if a player slips one round lower than projected previously by a panel of draft experts.”
The article goes on to state that Ekpre-Olomu wasn’t the only player that had this policy in place, and that the University of Oregon was paying the premiums on the policy.
“Lerner’s Total Planning Sports underwrote the policy for Lloyd’s of London. Oregon paid the injury and/or loss of value insurance premiums for several players last year, including Ekpre-Olomu and Heisman Trophy-winning quarterback Marcus Mariota.”
Schools paying these policies is a hotly debated topic. The interesting thing is according to Lerner that these types of policies have been around for 25 years, but have only increased in volume recently.
With the debate raging over LSU star Leonard Fournette and whether he should risk injury by playing or not playing next year, these policies could be an option to offer some form of financial protection for his future.
Ryan Mayer is an Associate Producer for CBS Local Sports. Ryan lives in NY but comes from Philly and life as a Philly sports fan has made him cynical. Anywhere sports are being discussed, that’s where you’ll find him. Agree/Disagree? Thoughts, comments, complaints? Email or tweet him.