Hopefully, Lamar Jackson has a strong insurance policy – NBC Sports





As Ravens quarterback Lamar Jackson opts to proceed under the fifth and final year of his rookie contract, with $23 million in guaranteed money and no guarantees beyond that, he’s assuming the risk of an injury that would make the Ravens not want to apply the franchise tag to Jackson in 2023 — and that would make it virtually impossible for him to get a market-level deal in free agency.
Thus, as plenty of players have done, Jackson would be wise to have insurance. It’s unclear whether he does.
There are many different types of policies and protections. None are cheap, and some players have experienced real difficulties when it comes to cashing in.
Without an agent to guide Jackson through the process of finding proper coverage and selecting the right policy, he’ll have to make the decision on his own.
He may decide that it’s too expensive. He may decide that the policy has too many loopholes and exclusions. He may just decide to roll the dice and hope for the best.
Whatever he chooses to do, it’s yet another situation in which he needs to understand the various options and make an informed and reasoned decision. For his own sake, hopefully he has.
And, yes, there’s a chance that even a serious injury won’t derail his earning potential. Two years ago, Cowboys quarterback Dak Prescott suffered a broken ankle, and he still got a massive deal from the Cowboys. (Dak nevertheless had an insurance policy.)
Of course, Jackson could possibly have a massive deal from the Ravens right now, assuming that the deal pays out more than $100 million in full guarantees at signing, with possibly much more in injury guarantees. That would make disability insurance unnecessary.
Without a long-term deal, a disability policy is crucial. For Lamar’s sake, hopefully he has one.
A comparison between agent fees & insurance costs would help give perspective.
yep, if his career ended how could he ever live out his life only on $23 million dollars…
Well I am sure its not his brain.
A local reporter asked him about insurance policy earlier this week & he said it was not something he had or something he was interested in.
All is well!
At this point it strains credulity that he does not have someone advising him, official, or otherwise. On the other hand, he might be looking at his situation as one might if selling a beautiful home that is priced correctly. Why pay an agent when this house will sell itself.
Lamar Jackson does not even deserve a Deshaun Watson guaranteed quarter billion dollars contract. After all, he has never once led his team to a 4-12 record, nor has he ever had the honor of being shown to be perverted sexual predator.
A good agent would make sure he does…
Lamar’s game isn’t like Kirk Cousins safe game where he can bet on himself.
He’s rolling the dice for potentially 3 years.
“A comparison between agent fees & insurance costs would help give perspective.”
———-
1.) Agent fees are a capped 3%, so it’s a no-brainer to hire a Condon or similar to handle this. The fees are completely realistic.
2.) Insurance costs are another, very complex matter, entirely.
A loss-of-value policy, like the type you typically hear of in college, have max payouts attached (usually 50% – 60% of projected contract value) and HUGE list of exclusion criteria.
Here’s an example of this being done in the NFL.
“In 2013, Lee paid a premium of $94,600 to Lloyd’s to cover him should he fall in the draft to a contract worth less than $9.6 million.”
You can see that Marqise paid roughly 1% of total estimated contract value in premium. So, let’s use that as a guide even though it’s 9 years old.
Lamar needs a $250m insurance policy (or higher because it only pays out 60%?), and his total premium cost should be around $2.5m/yr.
That doesn’t mean he can collect, though. It often takes suing the company (lloyds of london, for example) and/or settling on a reasonable payout.
Then you have to take in consideration he’d have financial offsets, such as a new lower-value contract, which means he’d try to recover the difference between the new contract and the insured value ($250m, or 60% of $250m)
TL;DR: An agent would cost him $7.5m on a $250m contract and insurance would cost $2.5m on a $250m – so, basically, 4% of his total contract value to both get an agent and pay for insurance.
Considering he’s going to owe around 50% in taxes (+various state taxes from venues he plays in), he should probably just spend that $10m and “INSURE” he gets that contract and protection.
I know you want to make this some big news story but the Ravens were never going to pay Lamar. Nite2al can keep on spouting nonsense on how great Lamar is but the reality that 99% of football fans, owners, and management understand he’s not a good QB. Great athlete, although now injured. Can’t throw accurately. Can’t read defenses. Can’t win in the playoffs. His last two years have been atrocious and he’s on his way to being a backup within 3 years.
It’s fun to look at comments whenever there is a Lamar Jackson story. Amazing how many haters there are!
Jackson puts butts in the seats (and eyeballs on the product). He’s fun to watch as a football fan, and in the end that’s ALL the NFL wants. Hope he gets all he can before the NFL spits him out and the next “big” thing comes around……
His play has gone done horrifically every year.
Isn’t it fun to worry about mult-millionares? Both the Ravens & Jackson will figure it out. IF I were the Ravens, I would roll the dice also. And for Lamar grow up & hire an agent. He is getting way too little even Nick Foles is making more than he is. They both will be ok no matter what.
All the hype over MVP is just that. Hype. LJ is on the back nine and not going to the SB or the playoffs. I wonder what the Vegas odds are.
His rookie deal was about $9 million, total. About half goes to taxes. His current net worth is $4 million, nearly his entire net salary. So he’s clearly good with money.
No doubt he has advisors, and has weighed insurance vs cost. And the imbeciles claiming he can “live on” his salary this year of $23 million, again, about half goes to the bloated corrupt government of ours, so his net will be more than his rookie deal up to this point.
NBC should be ashamed that they publish nonsense like this, 100% speculation, zero facts.
I do hope Lamar gets a gigantic contract, somewhere else, as Baltimore doesn’t deserve him.
Who’s to say what will happen? Raven’s have proven to have a smart front office – maybe they decide to go another way? Could happen. With the Raven’s running game, maybe they decide that a reliable QB – nearly but not quite a game manager, is the way to go. Sure, Lamar is flashy and puts butts in seats – but is he accurate and “clutch” enough to make the tough throws when they are needed? And mind – he has to be AVAILABLE (as in healthy) to do that. Even the healthiest, stoutest running QB puts himself at increased risk every time they run – there are some hits / landings where…sorry, you’re injured no matter who you are.
Wouldn’t shock me if the Ravens came to the conclusion that what worked for them years ago works now – stout running game, competent passing, and a great D (the D has some work to do to be “that” level).
For myself, I like a QB that can scramble and get some yards when a play breaks down – but a QB that runs as a weapon, not so much. Seems that there’s not much time till they’re on the bench, and what good are they then?
Foles is getting $6.5mil on a 2yr deal, how is that more than the $23mil Lamar is getting this season and after the way he regressed the last 2 season that’s too much?
Must be some of that NEW MATH they’re teaching now, the answer is whatever you want it to be!
RunItGunIt says:
September 10, 2022 at 1:10 pm
I know you want to make this some big news story but the Ravens were never going to pay Lamar. Nite2al can keep on spouting nonsense on how great Lamar is but the reality that 99% of football fans, owners, and management understand he’s not a good QB. Great athlete, although now injured. Can’t throw accurately. Can’t read defenses. Can’t win in the playoffs. His last two years have been atrocious and he’s on his way to being a backup within 3 years
___________________
They were never going to pay him DW money, Newsflash, I never said Lamar was great. I just know the Ravens were crap before he got there and now they are a very competitive team. And about contracts, I have a next man up mentality. Pay him like others got paid with poor playoffs records and all. Keep Lamar making up your Lamar stories to make yourself feel better. Can’t wait til Lamar racks up win after win this season and hear all the lane excuses from you guys. Gonna be nice.
I’m not a fan of either, but if Watson got his contract after sitting out a year because he was afraid to face fans and was expected to miss 6 – 17 games this year, Jackson will be fine no matter what Halen this year.
The browns really screwed up franchise quarterback contracts from here on out
It’s highly unlikely he gets so badly hurt it impacts his future.
A teddy Bridgewater injury is rare.
QBs come back from torn ACL all the time.
He will max out his earnings this way.
The question is what does he want?
Only money or to play on a good team and have a chance at a super bowl?
Jackson is quickly being passed by many young QBs in the AFC. Can’t run like.him but throw MUCH better. Unless Lame-arm can learn to throw the 30 yd out, the ceiling for the Ravens is the wild card.
Lamar Jackson needs to realize he’ll need support for him to succeed. If he takes up most of the cap space he’ll soon learn how “mortal” he can be. Tom Brady was smart (of course having a super model who makes more money didn’t hurt) to realize he needed a supporting cast for him to succed.
george1859 says:
September 10, 2022 at 12:51 pm
“Lamar’s game isn’t like Kirk Cousins safe game where he can bet on himself.”
…and yet…he is indeed betting on himself. Funny how that works.
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