Quote:
Originally Posted by Coach
Well for 5 million for a small market like the Royals, for a reliever, that's crippling, in my opinion. And, while the injury to Luke was just sad and sucks for everyone involved, that's just piss-poor management by Dayton Moore and the Royals.
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"crippling" is defined as a career-ender in the first few years of a Pujols type of deal. You might be thinking that the insurance only costs 50k or something, but that may not be the case.
This isn't some blunder by the royals, it is widespread MLB practice to rarely take out these insurance policies for any but the richest of contracts. Apparently the pricing and restrictions for baseball player insurance is so unattractive, that you don't buy the insurance unless you really have to. $5MM for 1 year is not even remotely crippling for any team. The insurance company is not a non-profit, they aren't going to price the contract at a break-even. If you are going to write this kind of a weird exotic policy without a lot of Actuarial data, you are going to demand a lot of expected ROI.