John Calipari has invented a new NIL booster insurance plan

Boosters have become more important than ever in the name, image and likeness era of college athletics, and Arkansas head coach John Calipari has come up with a way to protect those who want to help schools build out their rosters.

Travis Long, who played for Calipari at Memphis, and his business partner Steve Stelmach founded a company called the 32 Group earlier this year. Though Calipari has no direct involvement in the New York-based company, the 66-year-old coach is the one who proposed the idea for a way to protect donors who commit money to players.

For a 3% premium, 32 Group offers donors an insurance policy to protect against a player getting injured. If a player were to suffer a season-ending injury prior to Jan. 15 of their first season at a new school, the entity that committed the money to the player would be paid back in full. If the player were to be ruled out for the year between Jan. 15 and Feb. 15, the policy would return 50%.

For example, a school, collective or business that committed $1 million to a player could buy 32 Group’s insurance policy for $30,000. ESPN’s Dan Wetzel offered a detailed explanation of the model.

“Brainchild of Arkansas, coach John Calipari, said hey, if I go ask a booster or business or even my school’s (revenue) share for $1 million to get a player, what happens if that players gets injured on day one and doesn’t play?” Wetzel said. “The player still gets his money, which is great, but everyone else is out.

“Enter booster insurance. Enter (32 Group), a group that’s offering — backed by Lloyd’s of London — a deal where Arkansas is going to pay 3% premium to get this thing insured, 30 grand on a $1 million player. If that player is lost for the season before Jan. 15, Arkansas gets all its money back. If it’s by Feb. 15, they get half. If the player’s lost, the school gets to take that money and use it for next year’s recruits, use it to fund the program, or whatever. They’re protected. There’s a lot of money out there that’s not being insured in college sports, so enter booster insurance.”