Jameis Winston's $10M Insurance Policy Funded in Part By Florida State University, Why It's Perfectly LegalBy Russell Westerholm, UniversityHerald Reporter
Florida State University (FSU) is paying for part of its star quarterback's loss of value insurance policy, but the school is not shying away from it.
Yahoo Sports first reported in late June that Jameis Winston had taken out such a policy for $8 million to $10 million. Unlike disability insurance, common among many NCAA Division I football players, loss of value pays the player if he drafted lower than expected.
Winston and his father have hinted that the reigning Heisman Trophy winner could be staying at FSU beyond this season. If he does, the loss of value policy makes sense because his draft stock cannot go much higher as of now, but it can drop a long way.
A spokesman for FSU confirmed to ESPN that the school will be tapping into the Student Assistant Fund (SAF) to help Winston pay for the loss of value policy.
"[The SAF] shall be used to assist student-athletes in meeting financial needs that arise in conjunction with participation in intercollegiate athletics, enrollment in an academic curriculum or that recognize academic achievement," the NCAA says on its website.
In July, ESPN's Darren Rovell cited unnamed sources that told him Winston had a $10 million policy and $5 million apiece went to injury and loss of value. Yahoo Sports estimated Winston's insurance premium to be $55,000 to $60,000, which FSU reportedly plans to cover.
Fox Sports reported in July that Texas A&M University did the same thing with Cedric Ogbuehi, their three-year starter at offensive tackle. Though not a five-star recruit like Winston, Ogbuehi is a six-foot-five, 300-pound lineman and Texas A&M felt like they exposed a convenient loophole in an NCAA rule.
Justin Moore, Texas A&M's associate athletic director said he did not know schools could use part of their SAF to help pay for athletes' insurance policies. However, it is quite legal and Moore told Fox Sports he did not "think many schools know about it."