Report: Browns CB becoming first to collect loss of draft value insurance

AP

Browns rookie cornerback Ifo Ekpre-Olomu was drafted in the seventh round last May and is spending his rookie season on the non-football injury list.

Ekrpe-Olomu, projected by many to be a first-round pick, was injured last December in a University of Oregon practice, and a CBS report Friday said Ekpre-Olomu is close to collecting a $3 million loss of draft value insurance policy.

Keith Lerner, head of Total Planning Sports Services, told CBS that Ekpre-Olomu will become the first player to cash in on the policy.

“His hope is that he is going to come back and play,” Lerner said. “Hopefully he’ll come back and have a great career.”

Loss of draft value claims are paid if a player slips one round lower than projected previously by a panel of draft experts. The Browns selected Ekpre-Olomu with the 241st pick.

Total Planning Sports Services 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. Colleges paying for such insurance is legal under NCAA bylaws.

Lerner said premiums typically cost $8,000 per $1 million of insurance.

Many top college players are taking out such policies. Cedric Ogbuehi took out a loss of value policy that Texas A&M paid for, but he won’t collect because the Bengals took the offensive tackle in the first round in 2015 despite a knee injury last December.

14 responses to “Report: Browns CB becoming first to collect loss of draft value insurance

  1. If their 40-60k a year scholarships aren’t enough for 4 months of work, they can certainly go to Canada for a year. They’ll make their $200k and become apply to NFL draft or FA when they come of age.

  2. The NFL forced the CFL to sign an agreement that underage players cannot play in Canada, to avoid just these kinds of situations. CFL teams cannot sign American players until they are NFL draft eligible.

  3. daysend564 says:
    Oct 2, 2015 12:30 PM
    If their 40-60k a year scholarships aren’t enough for 4 months of work, they can certainly go to Canada for a year. They’ll make their $200k and become apply to NFL draft or FA when they come of age.

    ———————————————-

    If you actually believe a college football player only “works” four months a year, then gawd help you. That is a full time job.

    Large football programs are now raking in around $100 million per year. They ought to be required to spread around some of that wealth.

  4. This is the first instance of an insurance policy actually paying a claim for an injury. From what I’ve read, the policies are pretty much a scam, which rarely pay off, so I’ll believe it when the check actually clears.

    For the amount of money that the NCAA makes off of the players, they could get one hellava group discount to cover the athletes,that truly covers them.

  5. It’ll be fun seeing them try to squirm out of this one. Insurance companies consistently welch on their bets. It comes from not having any thumbs.

  6. daysend564 says:
    Oct 2, 2015 12:30 PM
    If their 40-60k a year scholarships aren’t enough for 4 months of work, they can certainly go to Canada for a year. They’ll make their $200k and become apply to NFL draft or FA when they come of age.

    ——————————-

    Do you really believe college football players work on school-sponsored football related activities for only 4 months a year? In what Pop Warner world are you living in?

  7. If this guy can come back and be even 75% as good as he was in college, picking him will make up for taking Justin Gilbert.

  8. “12coltsfan12 says:
    Oct 2, 2015 12:09 PM
    why not just quit the charade and pay them in college???????”
    =============================================

    Because only a handful of the colleges are making serious money. The money generated by football and basketball helps fund non-revenue sports. If we started cutting those sports as many colleges are doing, we lose the overall experience of college. If you start paying players, then many universities will likely drop football and then everyone poorer for the experience.

    We don’t want to become a society where there are only a few options.

  9. granadafan says:
    Oct 2, 2015 2:01 PM

    “We don’t want to become a society where there are only a few options.”

    Is that not what the NCAA is doing, for a larger pool of “student athletes”? 80 Division I scholarships, so yes, there are many that you’ve never heard of who do get an education and contribute to society, but aren’t we talking about the stars, the ones who put fannies in the seats and get the alumni and boosters to shell out millions?

  10. How is the payment of $24,000 in insurance premiums for the exclusive benefit of the individual player not income and personal compensation? I wonder if the players are claiming the premiums paid on their behalf as personal income for tax purposes? Or, are the premiums being considered an employment benefit for the players? And if so, who is their employer? And how/why are the premiums only being paid for some players and not others? Wouldn’t the unequal treatment for one player’s benefit over another’s be a recruiting violation?

  11. @granadafan Oct 2, 2015 2:01 PM, @12coltsfan12 Oct 2, 2015 12:09 PM
    ============================

    Btwn the two of you you’re getting close to the solution to the problem of big time college sports and the negative impact they are having on our college campuses. But instead of half measures, why don’t we get to the real point.

    Let’s eliminate these sports programs and let colleges and universities do what they were meant to do. Let them provide students with educational studies that will prepare them for careers after the students graduate. If after graduating from high school a kid wishes to pursue professional sports, well … good luck with that.

    Let the sporting world supply the wherewithal and/or resources to develop their enterprises and players.

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