Salary cap insurance article

[Tainthappening]

I honestly never heard of this... interesting article. Copied some of the interesting parts....

ESPN article - insurance and salary cap relief

Last October, Sportico first reported that the Jets declined to purchase insurance on Rodgers' contract to protect the team if he missed games for injury or illness. The Jets missed out on recouping up to $22 million in insurance proceeds by not purchasing one of several policies ranging in price from $1 million to $4 million, per the report.

Not mentioned was the biggest loss the Jets suffered by forgoing insurance, the very reason that Buffum calls this a tragedy: the corresponding salary cap relief.

The CBA labels insurance proceeds as a "refund from the player," which qualifies the amount as a cap credit for the club for the following season. In the simplest terms, if a player who eats up a significant portion of a club's salary cap misses significant time with injury or illness, a club doesn't have to take it as a total loss, but can recover space for the following year. Plus, insurance premium payments don't count against the salary cap.

"That's the crux of the loophole," the former club executive said. "You effectively can use cash to create cap space from scratch. In a closed system, that is one of the few ways to buy cap space."

In the quarterback-dominated NFL, it should be no surprise which position has been the most powerful magnet for policies. Thirteen of the top 14 quarterback deals in total value are insured for a portion of their contract value, with the Lions' Jared Goff the lone exception in that group.

Tagovailoa, who left in the third quarter of Thursday's game with a concussion, is covered by $167 million in injury guarantees per the language of his contract, if he is never cleared to return to play again. There are no waivers or exclusions for concussions. The Dolphins are also insured for up to $49.3 million of Tagovailoa's contract.

But the playing contract and Miami's insurance policy are two different things, and though the specifics of what the $49.3 million covers are not known, two insurance industry sources without direct knowledge of the Dolphins' policy said that based on their experience working with insurance carriers, they'd expect that concussions would be excluded from Miami's policy coverage on Tagovailoa.

THE EAGLES MUST lead the league in this advanced stat -- Using insurance addendums as a guide, the club has insurance policies on at least 16 players for 2024. Philadelphia's portfolio is the stuff of legend among salary cap staff and those in the insurance business because of the sheer number of policies it buys, and the range of contract values insured.

 

[Caliskinsfan]

 

[DonMan]

$163,870 seems like a trivial amount of money compared to Burrows salary, and the cap. One player on the practice squad for the season costs more than that.