Originally posted on New York Mets Report  |  Last updated 3/29/13
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. Across baseball, outside insurance has “declined tremendously,” according to one baseball official. Santana was self-insured by the Mets, whereas the Mets contracts for Carlos Beltran, Jose Reyes, Tom Glavine and Mike Piazza’s were insured externally during their Mets days as well. David Wright’s last contract also was insured externally. You can read the rest of the article including all the details here.
MORE FROM YARDBARKER

Steve Kerr has amusing quote about fake Klay Thompson

Report: Some Cavs players were upset at plans for Irving tribute video

Goodell says players are being encouraged to stand, not forced

Diamondbacks announce Tony La Russa will leave organization

Mike D’Antoni trolls Draymond Green over defensive criticisms

LIKE WHAT YOU SEE?
GET THE DAILY NEWSLETTER:

Bulls suspend Portis eight games for punching Mirotic

Police make arrest in Ken Griffey Jr. statue vandalism case

Report: Bridgewater will have ‘no physical limitations’ in practice

Gordon Hayward’s wife, father provide updates after injury

Carmelo Anthony: Phil Jackson wanted 'to trade me for a bag of chips'

DeShone Kizer named Browns starting QB for Week 7

The 'Can I have a quick sword with you?' quiz

NFL Referee Hotline Bling: Austin Seferian-Jenkins drops a call

Blackhawks get extra depth on defense with newbies Rutta and Forsling

The 'Old faces in new places' quiz

Nikola Jokic: A throwback superstar for the modern era

25 questions heading into the 2017-18 NBA season

The 'Sure do hope you have a backup plan in place' quiz

Tale of the Tape: National League Championship Series

Sports & Politics Intersect: White House looms large over sports world for another week

The 'A butcher, a Baker, a touchdown maker' quiz

Tale of the tape: American League Championship Series

What's trending up, down so far in the NFL

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 Yardbarker Privacy Policy and Terms of Service. You can opt out at any time. For more information, please see our Privacy Policy.

The 'Can I have a quick sword with you?' quiz

NFL Referee Hotline Bling: Austin Seferian-Jenkins drops a call

Blackhawks get extra depth on defense with Rutta and Forsling

The 'Old faces in new places' quiz

25 questions heading into the 2017-18 NBA season

The 'Sure do hope you have a backup plan in place' quiz

Tale of the Tape: National League Championship Series

Sports & Politics Intersect: White House looms large over sports world for another week

The 'A butcher, a Baker, a touchdown maker' quiz

Tale of the tape: American League Championship Series

Today's Best Stuff
For Publishers
Company Info
Help
Follow Yardbarker