Reports: Ex-Duck collects record $3M insurance claim after draft fall
Much has been made in recent years about so-called loss of value policies — insurance policies collegiate athletes take out on themselves, designed to pay income lost if an injury causes that player to drop in the draft.
Some of the biggest names in college football last season had such policies, including top pick Jameis Winston (reportedly worth $10 million), No. 2 pick Marcus Mariota (reportedly worth $5 million) and No. 15 Melvin Gordon.
According to multiple reports, another name from the 2015 NFL Draft — but one called much, much later than the names above — also had such a policy and just collected on it big time.
Cleveland Browns cornerback Ifo Ekpre-Olomu, selected in the seventh round out of Oregon, collected $3 million Monday, ESPN reported. According to the Darren Rovell report, that is the largest sum ever collected by a player on such a policy.
Ekpre-Olomu, a teammate of Mariota at Oregon, bought the policy with the school before his senior season. Projected by most to be taken in the top half of the first round at the time the policy was taken out and throughout last season, Ekpre-Olomu tore his ACL while practicing for the Ducks’ College Football Playoff semifinal in December.
The injury led to his falling all the way to the seventh round, where the Browns selected him No. 241 overall. It was learned after the draft that the DB also suffered a dislocated knee and that he will likely miss all of this season.
According to NFL.com, the $3 million claim was triggered when Ekpre-Olomu was not selected by the conclusion of the third round.
The ESPN report said that the specifics of exactly how much Ekpre-Olomu will collect from the policy were unclear; while he paid most of the premium, the University of Oregon also contributed to the cost, which could affect what taxes, if any, Ekpre-Olomu must pay.
Earlier this month, another former Pac-12 offensive star became the first player to collect on a loss-of-value policy, as former USC running back Silas Redd — currently on the Washington Redskins — collected on his policy, though the amount he collected is unknown.
Redd went undrafted in 2014 after injuring his knee late in the 2013 season at USC. He played sparingly in Washington last season after fighting to make the team, then was placed on season-ending injured reserve after injuring his knee this preseason against Cleveland.
In March, another former USC player, Marqise Lee, sued Lloyd’s of London for $4.5 million, claiming the money was owed him from a loss-of-value policy but the company would not pay.
Lee, currently on the Jacksonville Jaguars, claims a sprained knee in that same 2013 season forced him to drop into the second round.
Lloyd’s is reportedly disputing the claim on grounds that Lee failed to disclose a knee injury when he applied for the policy.