http://espn.go.com/ncf/news/2003/0113/1492158.html Even if he took out the 2.5 million insurance policy before the Fiesta Bowl, this surprised me quite a bit. IMHO he'll still go in Round 3 or 4, possibly 2. Someone will take him knowing he won't play next season as a future investment.
Yup...heard 3rd round at the earliest. Might as well get paid to rehab and surround yourself with professionals to get used to the NFL. Better medical care and rehabilitation as well with a pro team.
So I have a question for you insurance experts out there. McGahee is due to receive $2 million minus taxes next year if he does not play a down of football. If he is drafted and signed to a contract, he will receive a signing bonus, which is the only part of the contract that is guaranteed. Now, by signing a contract, does he forfeit the insurance money? Or does he get the signing bonus and insurance? Or can he give up the signing bonus and take the insurance if the latter is greater than the former?
i don't know what to think, maybe he will get better medical and rehab treatment this way i wish all the best for this guy, that was a nuts injury
Yeah, no doubt. The more I think about it, it was a pretty smart move. I dunno that I'd gamble a 2nd rounder on him, so a 3rd sounds about right, but he's definately a shoe-in before the 5th round. The risk is well worth it for a 4th rounder.
He has four games to make up his mind, after the four games he can chose to take the $2.5 million, there are no taxes charged to it, or keep playing. I think he is making the right choice coming out.
I see. Thanks. BTW, it's a trivial point but this article suggests it's $2.5 minus taxes: http://espn.go.com/ncf/bowls02/s/fiesta_mcgahee030106.html ... he'll get $2.5 million minus taxes, Lerner said. He said McGahee will be eligible to collect Jan. 3, 2004 -- one year from the date of the injury.
--------------------------------- What pick would he have been in the first round if the knee doesn't get pancaked? This might actually be a very smart move -- he goes in X round this year to a team that can win something instead of, say, to Cincinatti or a basket-case franchise.
True. Tax on $2.5 mill is quite a big chunk. It's probably good for the team that drafts him too. They can place him on the injured reserve or inactive list or whatever one that doesn't count against the 47 man roster, give him a contract with incentive clauses and pay him a reasonable bonus. Considering that rookies are always liabilities, McGahee is not a huge risk.
that article on espn is not correct. those insurance policies are non-taxable, that lerner guy <quoted in the article as saying it is taxable> even said so when they discussed this on the dan patrick radio show early last week and i was confused when they said it was not taxed money, so i asked my old man who is an accountant and he explained it to me, if he collects the $2.5 million insurance he does not have to pay tax on it in the first year... agreed, i think that someone is going to get a steal with this kid. he seems to have his head of straighter than most of those miami kids and i wish him the best of luck. i have no doubt he will recover and be one of the better running back in the nfl in a few years...it just is going to take a team with a little bit of patience.
Well they say he decided to go pro because he didn't want to come back to Miami and have his spot taken by Frank Gore,who also is recovering from a knee injury.I think there's several NFL Gm's willing to take the risk on this guy.
If he doesn't somehow end up being the same player after the injury, then he can at least make a respectable living in the CFL or take the insurance money, either way I think he is going to do well in life wherever he ends up. -VON
Yea, but he can't say, 'At least I got my education." I have a feeling he signed with an agent and the policy only shows he was going pro before the injury. Ironic that the policy has forced his hand instead of making his decision any easier. Can't blame a kid for banking on himself. As Wesley Snipes said in that classic movie, Passenger 57...Always bet on black!