As was reported here last week, the NCAA’s Student Assistance Fund is beneficial because it assists athletes with the payment of insurance premiums, thereby preventing peripheral elements to illegally foot the cost.
The support from the NCAA, however, only goes so far.
Athletes are not assured they will collect on money from the insurance companies if their careers or draft status become affected by a debilitating injury while in college. In fact, no athletes reportedly have collected from an insurance provider to date. This is the case despite the assistance available to athletes since 1990 in football and men’s basketball, according to the NCAA. Baseball, women’s basketball and ice hockey have been added in recent years.
It appears that this lack of payouts from insurance companies will change in less than two months, with former Oregon cornerback Ifo Ekpre-Olomu (shown above) scheduled to collect on his $3 million policy, according to a CBSSports.com report last week.
Ekpre-Olomu, a projected first- or second-round pick, sustained a serious knee injury (torn ACL and dislocated patella) during practice when Oregon prepared to play Florida State in one of last year’s playoff semifinal matchups. Because of the injury, Ekpre-Olomu tumbled to the last round of the NFL draft – the seventh round – to Cleveland. The drop cost him millions of dollars. Ekpre-Olomu is sitting out this year because of the injury. If he is unable to have a sustained NFL career, the injury most likely set him back more than $8 million because a first-round pick of his stature when healthy generally signs for at least $11 million.
The $3 million he will collect, while a lot of money to most, is of humbling consolation to Ekpre-Olomu. At least he is collecting something from the approximate $24,000 that Oregon paid for his insurance premium. It costs $8,000 per each $1 million policy, according to various reports.
Former players whose draft status became affected by injuries are envious of Ekpre-Olomu.
Jacksonville Jaguars receiver Marqise Lee, a former USC star, sued Lloyd’s of London in March after the company denied a claim for benefits under a loss-of-value policy. Lee’s premium worth $94,600 in 2013 protected him in case an injury with USC resulted in him getting an NFL contract worth less than $9.6 million. He suffered a season-ending knee injury that year and fell to the second round, signing a contract worth $5.17 million. Lee is seeking the difference between his projected worth and his contract’s worth, which is approximately $4.5 million.
Lloyd’s of London did not pay Lee because it argued he withheld information about his previous injuries. Insurance companies would rather undergo a legal fight with the claimant than make a payment in the millions.
“The reason (for the history of insurance company non-payments) is primarily that the policy, in order for it to pay, requires that the athlete be totally and permanently disabled from playing professional football,” attorney Bryan Fisher told the New Orleans Times-Picayune last week. “Most of the policies, in fact — I can’t think of one over the years that didn’t have this language — also require that that disabling injury come from a single discreet event.
“So the defense that’s always raised in these cases is that, No. 1, they’re not totally, permanently disabled from football — they can do something — and, second, that even if they are, they had a prior injury and that prior injury contributed to their disability, so the policy doesn’t pay.”
The fear of injury can cause hasty decisions, especially with the athlete’s parents or guardians passionately wanting to protect what they have invested in their child.
LSU’s prolific running back Leonard Fournette, only a sophomore, is hearing suggestions from all over that he should challenge the early-entry rule into the NFL draft and leave after this year. If that path is not practical to him, he is expected to request from the NCAA assistance next season to make the payment on a premium for an insurance policy protecting his career and draft value. Fournette has already let it be known through his Twitter handle that he will not leave the program and sit out next season to avoid injury.
The question as it pertains to the NCAA’s role in all of this: Will it adequately educate Fournette and others of all that is involved with taking out an insurance policy?
Because institutions are drawing large sums of money from the Student Assistance Fund to pay for premiums, these schools and the NCAA should make it a priority to make certain athletes and their families are aware of the problems many others, such as Lee, have experienced.
The athletes must know about the policies involved (covering disability or loss-of-value).They must prepare themselves to be in the best possible position to collect on their policy if a debilitating injury occurs. A proactive approach by the NCAA in this matter protects the value of their support from the Student Assistance Fund. Otherwise, the NCAA is throwing money away and giving these athletes false hope.
Featured image via T. Ruszkowski-USA TODAY Sports
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