Jay Ajayi could reportedly make up to $5M from insurance policy he took out on himself
The Eagles running back will miss the remainder of the season after tearing his ACL on Sunday
Jay Ajayi experienced what most people would call a tough break by landing on Injured Reserve with a torn ACL this week.
The Philadelphia Eagles running back had already been battling through a back fracture for the defending Super Bowl champions, and with a contract set to expire after 2018, this was supposed to be his year to prove himself as a future free agent target.
As NFL Network's Ian Rapoport reported Thursday, however, Ajayi may have foreseen a contract-year injury or at least seriously considered the possibility of one -- enough to take out a loss-of-value insurance policy on himself. As Ajayi's business manager, Josh Sanchez, told Rapoport, the former Miami Dolphins draft pick knew he was "valued as a significant free agent" and decided "to protect him against exactly what ended up happening."
So he bought what Rapoport estimated as an "$80,000-$100,000" insurance policy that will pay him up to $5 million after taxes depending on the value of a free agent contract he'll presumably sign entering 2019.
If the injury takes his market down to a point where he would be a lower-level free agent, he can receive a maximum payout $5 million net -- after taxes. In other words, if Ajayi's free-agent value goes down, the policy will help make up the difference. Let's say he's valued as being able to earn a four-year, $16-million contract before the injury. But now, he ends up earning just $8 million over four years.
The Eagles, of course, have been linked to other veteran running backs, like the Pittsburgh Steelers' Le'Veon Bell, in the wake of Ajayi's season-ending injury. Corey Clement and Wendell Smallwood figure to replace the 2017 trade acquisition on Thursday night.
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