When holding a blackjack, do you opt for blackjack insurance?
The New York Jets certainly made headlines when they acquired Aaron Rodgers from the Packers and secured him with a two-year, $75 million guaranteed contract. However, it appears that they made a significant blunder in the process.
It turns out the Jets decided against obtaining insurance coverage for the 39-year-old quarterback, a decision that may have come at a cost of approximately $20 million.
According to Sportico’s Daniel Libit, multiple companies approached the Jets with offers for an insurance policy to protect Rodgers, but the team declined those opportunities.
After the New York Jets signed Rodgers to a new, fully guaranteed $75 million deal this offseason, his new team took a different approach. The Jets were offered multiple insurance policies for the 39-year-old’s contract, according to people familiar with the situation, but ultimately chose not to purchase one. The decision, consistent with the Jets’ recent approach to contract insurance, potentially cost the team $20 million-plus in insurance proceeds once Rodgers tore his Achilles tendon in the first game of the season.
Unfortunately, just one game into the season, Rodgers suffered a torn Achilles tendon.
Interestingly, it’s not uncommon for NFL teams to insure their star players. When Rodgers was with the Packers, they routinely purchased disability insurance, specifically temporary total disability (TTD) policies, which can save a team a substantial amount of money if a key player sustains an injury.
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In the NBA and NHL, it is mandatory for teams to insure their highest-paid athletes, but in the NFL and MLB, the decision is left to individual teams. According to the Sportico report, the Jets, under owner Woody Johnson, have refrained from doing so for at least a decade.
Richard Giller, an insurance expert, expressed his opinion on the Jets’ choice, stating, “If they actually had an offer to insure a 39-year-old quarterback with 19 years of service, they should have taken it at any cost. I know hindsight is 20/20, but he is a 39-year-old quarterback.”
The Jets may have missed a significant opportunity, and now they must grapple with the consequences. Woody Johnson, who acquired the team for $635 million in 2000, likely wishes they had made a different decision, given the substantial financial impact.
While $20 million is a considerable sum, it underscores the fact that the Jets, like any sports franchise, operate as businesses with financial considerations at the forefront.
