An Advisors' Guide to Excess & Surplus Disability Insurance

What You Need to Know About Athlete Endorsement Deals

Posted Wed, Feb, 13th, 2019
By Exceptional Risk Advisors

Professional athletes in the NBA, NFL, MLB, and NHL make on average $3.9 million a year.  For those star players, endorsement deals can boost their annual income significantly.  For example, according to FORBES, endorsement deals in the NBA payout at least $7.5 million to the top dozen endorsers.  However, what the public doesn't realize, but more importantly perhaps even the player's agents and their influencers aren't always up-to-speed on, is that almost all endorsement contracts have standard built in language stipulating that the player needs to be fit, healthy and on the field/court/rink playing.  If a player is injured, sick, or benched, then that player is going to lose a significant chunk of their endorsement money.  

These star athletes need an insurance policy that will supplement them in the event they are physically unable to fully honor their endorsement contract.  Fortunately, there are a number of insurance products in play that can supplement a player in the event they are injured or sick.  These plans call for a competitive premium of the total amount insured and can reimburse a player up to 60% of the contract deal.  The rates are based on age, injury history, past performance, deductible, etc...

Smart money says these are the players who need to have their endorsement money protected whenever possible.  To read more on this topic, download an article on protecting the non-guaranteed portion of your NBA client’s endorsement deals:

Download an Article on NBA Sneaker Deals