NFL: Jake Butt Took out Insurance Policy That Could Pay $2M

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Saturday April 29, 2017 - 21:22:06 in Sports by News Editor
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    NFL: Jake Butt Took out Insurance Policy That Could Pay $2M

    The 2017 NFL Draft featured a pair of players in Leonard Fournette and Christian McCaffrey who made smart decisions to skip their bowl games and just prepare for the draft. They avoided unnecessary injury.

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The 2017 NFL Draft featured a pair of players in Leonard Fournette and Christian McCaffrey who made smart decisions to skip their bowl games and just prepare for the draft. They avoided unnecessary injury.
The same can't be said for Michigan tight end Jake Butt, who suffered an ACL injury in the final collegiate game of his career against Florida State in the Orange Bowl.
The good news is that Butt, according to ESPN's Darren Rovell, had an insurance policy taken out on his body and career prior to the 2016 injury. That proved to be a very smart financial decision on his part, because he's currently collecting money as he falls down the draft board.
Per Rovell, the policy cost "roughly $25,000" for Butt to purchase, but it can pay him up to $2 million if he falls far enough in the draft.
And there's an interesting way that the policy is built out: around the midway point of the third round, Butt started collecting $10,000 per pick that he falls.
He has now collected roughly $150,000 as he's fallen into the fourth round after becoming, at best, the seventh tight end taken in the draft.
Prior to the fourth round beginning, six other names in a historically great tight end class were called. O.J. Howard, Evan Engram and David Njoku all went in the first round. Gerald Everett, Adam Shaheen and Jonnu Smith all came off during the subsequent two rounds of the draft.
Going in the fourth round would net Butt between $400,000 and $650,000 guaranteed. Signing a fifth-round contract would guarantee him between $200,000 and $300,000, while a sixth-round selection would get him between $110,000 and $180,000 in guaranteed money.
So Butt still stands to earn money despite the injury, and should recoup some of the loss he's taking for falling down the draft. And there's also that big-time endorsement money from Charmin' getting dumped on his lawn, thanks to his very unique last name.


SOURCE: CBS Sports


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