Posted on 09/08/2009 3:19:27 AM PDT by Perdogg
Oklahoma quarterback Sam Bradford was a certain early pick in the first round of last April's NFL draft — that is, before he decided to return to OU for his junior season. Many asked why he would give up millions of dollars for the college experience and the risk of playing with a rebuilt offensive line and rebuilt receiving corps.
(Excerpt) Read more at tulsaworld.com ...
ping
As was said by one of our sports casters said about another famous running back, “If he is willing to risk millions for a degree he can get anytime, he obviously NEEDS the education!”
I suspect that he doesn’t have to pay the premium ... the premium is loaned to him and he pays it down the road out of his signing bonus. Next summer.
If I remember correctly, Colt McCoy did this also - another year to hopefully win the Heisman and he’s paid off either way.
As did Matt Leinart.
Probably others too - is this a big trend in college sports?
That’s correct..the premium is a “loan” that is repaid from the first signing bonus. For those who are interested in the details, a few weeks ago cnnsi.com had several articles about this...just SEARCH their website..however..if there are a few more substantial claims filed, and paid, then you can expect that either 1) future premiums will skyrocket, 2) coverage amounts will decrease, or 3) both...Look at the guarantees for the top players iin this years draft $25-$35 million..if the MAXIMUM insurance payof is going to be a few million, then no way the top players will defer...
Ken how is it legal that they “loan” something in the name of an NCAA athelete? How does that play against rules for not accepting gifts, free rent, etc? Reggie Bush was accused of having free rent for his parents, based on future earning potential from a “possibly future” agent? How is this any different?
For policies purchased through the NCAA or through private agents, the premium must be paid immediately. Since most players' families don't have $20,000-$100,000 lying around, they must secure a loan to pay the premium. After Sheely's staff evaluates a player to ensure he is draftable and places him in the program, that player is guaranteed a loan through U.S. Bank to pay his premium. Since the terms of the loan are approved by the NCAA, the player doesn't risk his eligibility. Players who secure their own loans cannot accept any perks (lower interest rates, waiving of points) that wouldn't be available to the average bank customer. Otherwise, they would run afoul of the NCAA's extra benefits rule.
Still seems odd to me they can get a loan they don't have to pay until later for insurance, but can't get a loan they can pay later for daily expenses.... looks like the NCAA is more interested in keeping the top players for themselves rather than having them start their NFL careers.
there obviously is interest built into the premium. The problem case is the guy who wakes up one morning and decides he wants to move to Tibet and be a Buddhist monk.
He would still owe the premium and has no way to pay it. So these guys are “obligating themselves” to play pro football (or go bankrupt).
Why doesn’t the insurance company handle the loan?
A loan that doesn't have to be paid right now doesn't exist for the general public does it? I pay for my insurance the day I get the policy - I'm just saying the NCAA allows this perk/freebie because it benefits them, but try to have a private citizen GIVE a coat to a poor player and the player gets into trouble.
Yes I read that when I went to the site Ken suggested. It is interesting that more people haven’t questioned it though.
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