TMLBlueandWhite
Go Leafs Go
- Feb 2, 2023
- 2,129
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Correct, in some rare cases the contract is not insured and that creates some complications like makes the contract untradeable or prevents teams from signing a guy. Most noticeably, Michael Ferland’s contract was not insured. Pretty sure Nathan Hortons contract wasn’t either and that’s why Toronto traded for it and gave CBJ the clarkson contract bc Toronto could afford to pay Hortons contract when he inevitably failed his physical.
I think you misunderstood.
You're talking about the team insurance that pays a player if he gets injured so the team doesn't have to. But there's also private individual insurance the players purchase on their own. They make an estimate on potential career earnings and insure that whole amount so that in the event of debilitating injury the player still gets the difference between projected career earnings and actual earnings by way of an annuity.
For example Marc Savard's career ended early, but he probably got a huge insurance settlement that paid him close to what he would have earned if he stayed healthy and played another 400+ games, even if his final contract expired after only another 100 games or whatever.