Steeler LB Ryan Shazier has spinal surgery

[denverpatsfan]

So not playing next weekend? No hyperbaric chamber or deer antler spray this time?

In all seriousness I am glad he is on the road, although a hard one, to recovery.

 

[DaBruinz]

Thoughts and Prayers for Shazier.. Never want to see a player injured and never one with a spine injury..

 

[TomPatriot]

Screw the football career. I pray he recovers well and can walk without pain or discomfort.

 

[RobertWeathers]

Which is where he should have listened to many vet players and taken out an insurance.

I get when player that receive around the minimum dont do it because paying a couple 100K a year to be insured for 20-30m is a difficult proposition but pro-bowl level players that know that their next contract will be big can afford that.

It might seem like a hindsight discussion because something happened to Shazier but we had that exact discussion in the offseason in the context of Butler playing out his final ERFA year. Mayo said that for a couple 100k Malcom could have tax-free insurance that would be pretty much at the same magnitude as his next contract.

Yep - Jermichael Finley hauled in $10m bucks from his insurance policy after his spinal fusion.

Financially speaking, Shazier did something very interesting. Check this out. Basically he sold a stake in his future earnings to investors.

Shazier, 23, signed an agreement with a San Francisco start-up company in which the player will pocket $3.1 million in exchange for investors getting 10 percent of his future earnings, including football salary and endorsement deals. The company, Fantex Inc., said Shazier is the ninth NFL player to agree to such an arrangement.

So with the 2018 $8.7m injury guarantee payment, the $3.1m for the "IPO", his ~$9.5m earned so far and hopefully big bucks with his insurance payout, he should be in good shape (assuming he is conservative financially).

This was ominous..

Colangelo cautioned that investing in athletes is not as safe as traditional investments because of the potential for player injuries and poor performance, which don't exist with stocks and bonds.

For example, Fantex's first IPO was supposed to be with Arian Foster in 2013. But the company canceled the offering once the Houston Texans running back was injured.

Shazier has dealt with injuries in his young career. He was sidelined for eight games last year for knee and ankle injuries.

Steelers' Shazier becomes 9th NFL player to offer stake in earnings

 

[luuked]

Financially speaking, Shazier did something very interesting. Check this out. Basically he sold a stake in his future earnings to investors.

So with the 2018 $8.7m injury guarantee payment, the $3.1m for the "IPO", his ~$9.5m earned so far and hopefully big bucks with his insurance payout, he should be in good shape (assuming he is conservative financially).

I think this is very clever because it essentially gives him a baseline for what he will earn no matter what. Add in taking out some insurance on career ending stuff and you are pretty much taken care off no matter what happens in your career for the rest of your life.

 

[RobertWeathers]

I think this is very clever because it essentially gives him a baseline for what he will earn no matter what. Add in taking out some insurance on career ending stuff and you are pretty much taken care off no matter what happens in your career for the rest of your life.

Exactly. The poor guy may not walk normally again for the rest of his life. At least he has a couple of bucks to handle long term medical and health care which a lot of players don't.

 

[BTTA]

Financially speaking, Shazier did something very interesting. Check this out. Basically he sold a stake in his future earnings to investors.
Steelers' Shazier becomes 9th NFL player to offer stake in earnings

This is a classic socialization of risk, like any insurance policy. Shazier has tremendous risk as an individual while an investment firm can spread that risk across several athletes and take on very little risk. A great new marketplace. Thanks for finding this RW.

 

[RobertWeathers]

This is a classic socialization of risk, like any insurance policy. Shazier has tremendous risk as an individual while an investment firm can spread that risk across several athletes and take on very little risk. A great new marketplace. Thanks for finding this RW.

I totally stumbled across it. I Googled "Shazier insurance" just curious if the guy took some out and I found this.

Mrs RW and I do a little investing and don't have a big portfolio (3 kids going to college, 3 weddings i'll be working for a loooong time) but this investment strategy makes sense to me.

I think I can afford to invest in Eric Lee . Buy low only upside from here!

 

[TinhWoodhead]

I will miss hearing/saying his name...Shazier! Shazier! Shazier!! Shazier!!!

 

[Ring 6]

Exactly. The poor guy may not walk normally again for the rest of his life. At least he has a couple of bucks to handle long term medical and health care which a lot of players don't.

I’m under the impression that players have a lifetime medical package to cover that.

 

[RobertWeathers]

I’m under the impression that players have a lifetime medical package to cover that.

It is but I don't know if it'll cover everything Shazier will need if his spinal injury is permanent or long term. Just like a regular health care plan I'd need to look if things like PT, outpatient services, specialists, certain drug prescriptions, etc are covered.

In addition to ensuring a player’s post-career financial viability, the CBA also provides comprehensive insurance benefits for a player during his playing career. Insurance benefits can be broken down into three different categories: medical, dental and life. With regards to medical coverage, 100% of all in-network medical costs are covered for a player and his dependents. The annual deductible for medical insurance is $600 per player and $1200 per family and coverage will now extend beyond a player’s playing career with extended post-career medical and dental benefits up to a maximum of $500,000 annually per NFL team. Regarding dental coverage, 100% of all preventive dental care (exams and cleanings) is covered along with 85% of general services and 50% of major services. The annual deductible for dental coverage is $50 and there is an annual maximum benefit of $2000. With reference to life insurance, NFL rookies receive coverage of $600,000 at no cost while the annual coverage increases by $200,000 per credited season for veterans up to a maximum coverage amount of $1,600,000. One interesting, lesser known aspect of medical and dental coverage under the CBA is that vested NFL veterans (players with four or more accrued seasons in the NFL) will receive ongoing coverage for up to five years after the season in which they are released or retire from the NFL (they are covered through the end of their final season as well).

Shazier is accrued so he is ok there.

An Overview of NFL Player Benefits - Article - MBK Sports

 

[patchick]

I think this is very clever because it essentially gives him a baseline for what he will earn no matter what. Add in taking out some insurance on career ending stuff and you are pretty much taken care off no matter what happens in your career for the rest of your life.

It's interesting to contemplate this approach vs./on top of insurance. I presume that insurance protects in the case of career-ending injury, while the "stock sale" hedges against career/earnings disappointments? Presumably that could include suspensions, leaguewide labor disputes, financial collapse of the NFL, etc. as well as just plain not performing well.

 

[luuked]

It's interesting to contemplate this approach vs./on top of insurance. I presume that insurance protects in the case of career-ending injury, while the "stock sale" hedges against career/earnings disappointments? Presumably that could include suspensions, leaguewide labor disputes, financial collapse of the NFL, etc. as well as just plain not performing well.

I like it.. if you end up with a top of the line career and get to that 30-40m+ contract I doubt that you will care much about the 10% you have to give up anyway in return for piece of mind throughout your rookie career.

 

[n1997y]

This is a classic socialization of risk, like any insurance policy. Shazier has tremendous risk as an individual while an investment firm can spread that risk across several athletes and take on very little risk. A great new marketplace. Thanks for finding this RW.

That's one dimension of it. Another is getting paid today for a hamburger next Thursday. Or a reverse mortgage. He got paid for doing the deal, the investors bought a pig in a poke just hoping for big future contracts and endorsements.

I'd really like to see the prospectus, to know the detailed Ts & Cs and run the numbers on the Net Present Value of his future earnings. I'm sure the entrepreneurs who built the package took on no risk and built a hefty haircut into the deal. Wonder how something like this will affect their model. And their market.

 

[Nikolai]

Like others have said, the first and most important thing is that he's able to recover and live a normal life. Football is a secondary consideration...very secondary.

Maybe I'm naive but I really believe that most fans of the Steelers and Pats (and any others for that matter) would get along just fine if they could just talk over a beer, rather than shout at each other across the Internet.

We're so tribal these days in everything. Sports is no different I guess

Yep. I've recently been around a lot of Steeler fans in person (long story, kinda) and not once has any of them said anything about "Cheatriots" or any of the other stupid ****. Usually, they talk about how they grudgingly admire BB and TFB, and I state my own hope that once this era passes for us that we can remain perennial contenders like the Steelers have more or less done.

And I've been a ringleader of hatred for Pittsburgh and the Steelers...see my formaldehyde/air quality post about Pittsburgh.

I mean, still...**** em...I truly only have room in my heart for my Pats and then to a much lesser extent, the Saints. But I've softened my view on Pittsburgh-based fans.

 

[WhoaDirty]

Exactly. The poor guy may not walk normally again for the rest of his life. At least he has a couple of bucks to handle long term medical and health care which a lot of players don't.

I'd hope that all this would be covered by some kind of accident insurance the NFLPA has for all its' players? It would be pretty poor on their part if the player had to pay for healthcare costs like surgery, etc that happen during their playing career.

 

[RobertWeathers]

I'd hope that all this would be covered by some kind of accident insurance the NFLPA has for all its' players? It would be pretty poor on their part if the player had to pay for healthcare costs like surgery, etc that happen during their playing career.

See my post a few above this one. There is certainly coverage. Like you I'm not sure how comprehensive it is.

 

[CheekyDave]

Another positive I guess for this **** sandwich he got, is that the Rooneys appear to be legit people, so I am guessing that Shazier will always have a job with them, or some such landing cushion. The less we hear, the more obvious it is that he will be really lucky to ever walk again.

 

[RobertWeathers]

Some encouraging news on Shazier's condition.

Not alot of detail but some improvement is better than no improvement.

Sources: Shazier shows gradual improvement