Cincinnati Bengals offensive tackle Cedric Ogbuehi spent last summer deciding... should he leave early for the NFL draft (he was viewed as a first-round prospect) or stay in school for another year. Thanks to Texas A&M contributing $50,000 to an insurance policy for Ogbuehi, the offensive tackle decided to stay in school for another year to improve his stock and development.
The policy that Ogbuehi took out was loss of value:
The other is loss of value insurance that can come into effect for a player who had been projected at a high level of the draft but then due to injury or illness doesn't end up actually getting picked around that spot.
Because of the Aggies' contribution, he stayed in college:
"That's a lot of money," said Ogbuehi, whose parents have a small business teaching people how to become nurses aids. "This really helped with my decision. It opened up a lot of doors to staying. It's a great re-assurance knowing that (coming back for one more season) is not as big of a risk-reward -- just more of a reward hopefully next year."
Unfortunately, he suffered an ACL injury during the Liberty Bowl last December and his overall stock was primed for an April collapse. It didn't come. Sure...there were some that had Ogbuehi as a top-10 talent and one of the top offensive tackles in the NFL. Yet he was still selected in the first round (and how can anyone determine loss of value in an NFL draft that's more fluid than the Ohio River).
Cincinnati selected Ogbuehi at No. 21 overall. Now he won't collect on the policy, according to his agent in a story with the New York Times.
Still, Ogbuehi does not stand to collect on his insurance, his agent, Ryan Williams, said. Because most income is taxable but the insurance’s benefits are not, a player typically must fall precipitously in the draft for the policy to take effect.
"Although we believe he would have been drafted higher in 2014, he’s pleased with the outcome this year," Williams said.
Loss-of-value insurance has been available to any college athlete who could afford it, but colleges have recently begun paying for premiums out of their student assistance funds, which is legal under N.C.A.A. bylaws. Florida State reportedly paid for the policy for its Heisman Trophy-winning quarterback, Jameis Winston, who was the No. 1 overall pick this year. Georgia paid for a policy protecting running back Todd Gurley, who was drafted 10th. After word surfaced that Texas A&M had paid for Ogbuehi’s, Oregon paid for policies for several players, including the Heisman winner Marcus Mariota and cornerback Ifo Ekpre-Olomu.