With the NCAA (National Collegial Athletic Association) and the five major sports leagues about to reach a settlement agreement, colleges and universities will be allowed to directly pay student athletes’ salaries for the first time, with an annual payment cap of approximately 20 million US dollars per school. This historic transformation has prompted university sports programs to start exploring insurance policies to address the risks brought about by huge salary payments.
Tyrre Burks, the founder of Players Health, pointed out that as billions of dollars flow to athletes, colleges and universities need insurance to avoid financial risks. The company has launched several policies, including: critical illness insurance. If an athlete misses at least 40% of the competition season due to injury, the payment made by the school or the team will be compensated, with a maximum coverage of up to one million US dollars. Contract protection insurance, targeting the transfer risks of athletes, prevents players from transferring schools and leaving teams after schools prepay their salaries. Performance bonus insurance, although schools cannot directly distribute bonuses, can provide financial support to athletes when they reach milestones (such as being selected for the entire league or winning awards) through insurance, thereby enhancing the competitiveness of recruitment.
Since 2021, the NCAA has allowed athletes to profit through name, image and portrait rights (NIL), but direct payment of compensation has not yet been opened. This settlement will completely change this situation. Players Health has provided relevant insurance for alliance schools such as Big 12 and SEC, and customized premiums by using its injury and illness database and prediction models.
Burks emphasized that insurance not only reduces risks but also helps schools assess the value of athletes more fairly, promoting the sustainable development of college sports.
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