Originally written on New York Mets Report  |  Last updated 10/13/14
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...
MORE FROM YARDBARKER

Report: Chandler Jones to miss a month with hip injury

Lance Briggs left Bears' locker room to avoid the fighting

Could the Seahawks have gotten more for Percy Harvin?

Five storylines to watch in the 2014 World Series

Favre delays Lambeau return due to Bart Starr’s health

Cowboys release Michael Sam from practice squad

LIKE WHAT YOU SEE?
GET THE DAILY NEWSLETTER:

Fan in critical condition after being beaten before Bears game

Ben Roethlisberger rips the media

Tim Tebow: Gators don't have offensive leadership, lack heart

Colts punter asks Antonio Brown not to kick him in face

NFL: Luke Kuechly should not have been ejected

Report: Okla. St. players fell asleep in drive-thru, arrested

Matt Flynn had a blast at Pearl Jam concert

Report: Back injury could end Nathan Horton's career

Report: Ray Rice files grievance against Ravens

UEFA Champions League midway report: Groups E – H

PHOTO: Fans place Manning’s 509 football in Hall of Fame

Jets sign Jeremy Kerley to $16M 4-year extension

10 teams that should try to trade for Yoenis Cespedes

Lego stadiums: turning a childhood hobby into a business

Bayless: Kobe's sexual assault trial gave him 'edge' and 'sizzle'

Blackhawks make leukemia patient's dream come true

College football's post-Week 8 Playoff projection

Ortiz surprised military families with World Series tickets

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!

Rice files grievance against Ravens

UEFA Champions League midway report

Cowboys release Michael Sam

Bayless: Kobe's sexual assault trial gave him 'edge'

10 teams that should try to trade for Yoenis Cespedes

Five storylines to watch in the 2014 World Series

Ben Roethlisberger rips media

NFL Power Rankings Week 7

Pistorius sentenced to five years

Lane Kiffin trashed in political ad

Details of War Machine's suicide letter leaked

Angry Jimbo Fisher cuts off interview

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.