Eagles player becomes first ever to collect from loss-of-value policy
An interesting story is brewing in the NFL that could change the way professional sports do business.
Chance Warmack is a second-string offensive guard for the Philadelphia Eagles. His name may ring a bell, as he was once a hot prospect.
After an All-America career at Alabama, Warmack was the 10th overall pick in the 2013 NFL Draft by Tennessee, which saw him as an offensive line anchor for years to come.
At a time when his confidence was likely at an all-time high, however, Warmack had enough foresight to cover his back.
He signed a four-year deal with the Titans that paid him more than $12 million. Nothing strange there.
But he also took out an insurance policy that would kick in if his second NFL deal was for a total of less than $20 million.
Now maybe Warmack didn’t think he’d fall short of expectations, but he may have known that guards don’t generally get the big bucks.
Either way, he signed a one-year contract with Philadelphia worth $1.5 million.
$1.5 million is less than $20 million, so Chance gets to cash in his policy, to the tune of $3 million, according to ESPN’s Darren Rovell.
Rovell reports that the claim has been filed, and the player has received word from Lloyd’s of London that he will indeed be getting his payday.
Ronnie Kaymore of KBM Sports serves as Warmack’s broker.
While Kaymore would not comment on specifics of the insurance, he did confirm that his client would be the first NFL player to collect on a loss-of-value policy.
Warmack played in 11 games for the Super Bowl champion Eagles, including three starts.
ESPN lists him second on the team’s depth chart at guard behind veteran Stefen Wisniewski.
This could lead to a remarkable transition in sports. Consider, a player gets drafted, especially in football — where the contracts are not guaranteed — and he takes out a similar policy.
That leaves the said player in a win-win situation. Either he excels and earns a huge second contract, paying only the premium on the insurance policy, or he doesn’t and picks up a few extra million bucks.
No word on how prevalent this will become, but you can be sure, Warmack won’t be the only one taking a chance on himself.
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