Seems like a long time for a pay-out... Background: https://www.nfl.com/news/eagles-rb-...olicy-to-protect-from-injury-0ap3000000972694 From October 2018: "Eagles running back Jay Ajayi was slated to have surgery today on a torn ACL, one that ended his season after just four games and 184 rushing yards. That also complicates things going forward for his free agency. Ajayi's contract is up after 2018, and a long-term deal in Philly was no guarantee. For a player whose right knee had already given him issues during his career, a ligament tear in his other knee is less than ideal. However, according to his business manager Josh Sanchez, Ajayi bought a loss-of-value insurance policy this past year (and the year before) to protect him against exactly what ended up happening. Ajayi was valued as a significant free agent based on the policy. If the injury takes his market down to a point where he would be a lower-level free agent, he can receive a maximum payout $5 million net -- after taxes. In other words, if Ajayi's free-agent value goes down, the policy will help make up the difference. Let's say he's valued as being able to earn a four-year, $16-million contract before the injury. But now, he ends up earning just $8 million over four years. The policy should end up paying him to make up the difference with $5 million tax-free. Similar policies generally can cost as much as $80,000-$100,000. It's not what any player wants. But at the least, Ajayi has prepared for the worst-case scenario."
Insurance is the biggest legal scam. Because of insurance, institutions raise their premiums making insurance mandatory. And then after you’ve been paying into it for years, the insurance companies hire the worlds best lawyers to find a reason not to pay. Then they raise your rates! originally probably a good idea that has been taken over by the worst, on pretense that they care about you while preying on your biggest fears.
Good for him. Ajayi is responsible for our only playoff appearance in over a decade. He had a great year for us in 2016, wouldn't have made the playoffs without him.
Having worked in claims for personal injury insurance I’m not surprised it took a long time. Lots of issues need to be unpacked. 1) Jay Ajayi was already damaged goods. So there would have been language in the contract regarding the pre-existing condition. There’s no way you’d write a policy for $100K against $5M and have it cover the pre-existing condition, especially one as severe as AJ’s. There are grounds for dispute as to when the pre-existing condition would have forced him out of football even if he had never suffered another injury. 1a - there is also the interaction between the pre-existing injury and the new injury and a dispute over which particular injury caused the loss. This isn’t a situation of say a car crash wrecking his shoulder which would be clearly separate. Would he have been able to continue playing with the new injury but for the old injury. 2) AJ’s football career has to be definitively over before you pay out. The “I suddenly got better after I received my payout” is an old old scam. 3) The degree of disclosure AJ made about his pre-existing condition could be in play. The amount of the policy against the degree of risk for an already injured AJ had strikes me as off. I would have expected a much higher premium to be charged considering his history, which makes me think there is the possibility of his business manager failing to fully disclose the real facts to the insurer. There’s plenty of scope for complexity along with the high value of the claim makes it a candidate for taking longer than usual to settle.
