Originally written on Mets Merized Online  |  Last updated 11/16/14
Adam Rubin of ESPN New York, does a fine job of explaining why the Mets chose not to insure Johan Santana’s contract. The Mets will be on the hook for the remaining $31 million owed to Johan Santana because they did not insure the contract.  Why? As premiums have skyrocketed because of escalating salaries and past payouts — such as the bailout when Mo Vaughn was owed $17 million and could not play for the Mets in 2004 — the organization began more often “self-insuring” its larger contracts than seeking outside coverage. In essence, the Mets chose to create a rainy-day fund available so that the organization would not be crippled financially by the loss of a key player due to injury. It saves potentially a $2 million insurance premium per year to protect a contract, although the amount annually paid to an insurance company naturally decreases as the years on the contract elapse — like you’d pay less to an insurance company on a car as the years go by and the vehicle is worth less. Ac...
GET THE YARDBARKER APP:
Ios_download En_app_rgb_wo_45
MORE FROM YARDBARKER

Jon Jones thinks he can beat Cain Velasquez

Larry Bird jokes about pose of Dominique Wilkins’ statue

Barry Switzer urged Cowboys to draft Murray with great quote

SF Giants file brief in support of gay marriage to Supreme Court

Jay Cutler available to teams in trade

LIKE WHAT YOU SEE?
GET THE DAILY NEWSLETTER:

Brian Hoyer praises Johnny Manziel for checking into rehab

Dockett: I would have signed with Cardinals for less money

Report: Darrelle Revis' decision to come down to Patriots, Jets

Maurice Jones-Drew announces his retirement from NFL

Ndamukong Suh is biggest prize, risk in free agency

Associated Press will have 'robots' writing game stories

Five areas the Eagles must address this offseason

WATCH: Craig Sager emotional in warm welcome back to TNT

Likeliest landing spots for Ndamukong Suh

Tigers pitcher Alfredo Simon drives a chrome Mercedes

WATCH: Ronda Rousey breaks guy's ribs who doubts her ability

Michelle Beadle’s campaign to be cast in ‘Sharknado 3′ pays off

Ten teams who have tightened the belt

Dodgers will have a tough time dumping Andre Ethier

Brian Cashman: Derek Jeter should be final Yankees captain

Tom Brady, Rory McIlroy to play round at Augusta National

No one knows who will win the 2014-15 NBA MVP

Giants TE on plane that slid off runway in New York

MLB News
Delivered to your inbox
You'll also receive Yardbarker's daily Top 10, featuring the best sports stories from around the web. Customize your newsletter to get articles on your favorite sports and teams. And the best part? It's free!

By clicking "Sign Me Up", you have read and agreed to the Fox Sports Digital Privacy Policy and Terms of Use. You can opt out at any time. For more information, please see our Privacy Policy.
the YARDBARKER app
Get it now!
Ios_download En_app_rgb_wo_45

Larry Bird trash talks Dominique Wilkins’ statue

Likeliest landing spots for Suh

Jay Cutler available to teams in trade

Ronda Rousey breaks guy's ribs

Ten teams who have tightened the belt

Mayweather waited for Pacquiao to get old, right?

Maurice Jones-Drew announces his retirement from NFL

Ndamukong Suh is biggest prize, risk in free agency

AP will have 'robots' writing game stories

Manning officially returning to Broncos

No one knows who will win the MVP

Pop rips notion of NBA Finals in July

Today's Best Stuff
For Bloggers

Join the Yardbarker Network for more promotion, traffic, and money.

Company Info
Help
What is Yardbarker?

Yardbarker is the largest network of sports blogs and pro athlete blogs on the web. This site is the hub of the Yardbarker Network, where our editors and algorithms curate the best sports content from our network and beyond.