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View Full Version : An interesting trend


Daver
01-01-2003, 03:35 PM
On baseball players and long term contracts,from ESPN:

8. Insurance coverage will dictate size and length of guaranteed contracts
Only four free agents in Major League Baseball this offseason have received guaranteed contracts for at least four years. One of the major reasons? If the team signs a player more years, contract insurance is much harder to come by. Insurance premiums skyrocketed after the terrorist attacks on Sept. 11, 2001 and rates are only expected to slightly decrease as a result of President Bush signing a terrorism insurance relief bill on Nov. 27. The insurance industry's capacity to cover losses in the event a player gets hurt has and will continue to discourage teams from signing long-term deals.

You can read the whole column here. (http://espn.go.com/sportsbusiness/s/2002/1230/1484284.html)