New Broncos TE Jake Butt lands huge insurance payout after free fall in NFL Draft
Leonard Fournette and Christian McCaffrey made headlines this past season when they decided to sit out their teams’ bowl games to prepare for the NFL Draft. Michigan tight end Jake Butt said he has no regrets about playing in his, but he lost a significant amount of money by doing so.
Butt tore his ACL in the Orange Bowl after entering the game as a potential first-round pick. His draft stock immediately plummeted, causing him to eventually fall all the way to the fifth round. He was taken by the Broncos with the 145th overall selection, which will pay far less than that of a first-rounder.
However, he was fortunate to have taken out an insurance policy beforehand. According to ESPN, Butt received $10,000 per pick he wasn’t taken, beginning in the middle of the third round. In the end, he wound up making $543,000 in tax-free money, which somewhat makes up for his crushing injury.
Former Michigan and now Broncos!TE Jake Butt gets tax free $543,000 from loss of value insurance policy from draft fall, per @darrenrovell.
— Adam Schefter (@AdamSchefter) April 29, 2017
While it’s obviously great that Butt took out an insurance policy, it won’t make up for the millions that he lost as a result of the injury. Furthermore, it could lead draft prospects to be more hesitant when it comes to playing in meaningless bowl games.
Both McCaffrey and Fournette were taken in the top eight, while Butt slipped all the way to the fifth round.