Deion Sanders and the Colorado Buffaloes made headlines last week when they announced that every player would be covered under its Alamo Bowl insurance policy. But, the announcement left many with more questions than answers.
College Football Network spoke to one of the leading insurance recovery litigators in the country about Colorado’s injury insurance, bowl opt-outs, and more in order to gain a better understanding of what the Buffaloes’ Alamo Bowl policy does — and doesn’t — cover.
Leading Insurance Recovery Litigator Richard Giller Talks Colorado Injury Insurance, Bowl Opt-Outs
College Football Network sat down with leading insurance recovery litigator Richard Giller to get his thoughts on Colorado’s disability insurance policy and the rising trend of NFL Draft prospects opting out of bowls.
Giller has over 35 years of litigation experience and was among the first to become interested in disability insurance for college athletes, especially college football players.
It started when former USC Trojans linebacker Morgan Breslin sued the school for “guiding him in purchasing” a disability insurance policy that provided “inadequate coverage,” an issue Giller says is more common than people think.
Breslin sued the school when he didn’t receive a payout he thought he’d get after an injury, saying he was led to believe he’d be covered when, in fact, he wasn’t.
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Giller wrote an article about disability insurance and loss-of-value policies as they relate to college athletes.
Since then, he’s been at the forefront of sports insurance recovery litigation, representing dozens of athletes in their fights to collect on insurance policies.
My conversation with him brought up a few questions about Colorado’s injury insurance policy, including some that cast doubt on its perceived benefits.
Why Weren’t Colorado’s Players Covered Before the Alamo Bowl?
The first question I had for Giller surrounded the timing of the announcement. While touted as a brilliant way to keep Colorado’s stars safe and protect their individual interests, it seems odd that Coach Prime announced this plan in the present tense.
Were Shedeur Sanders and Travis Hunter not covered during the regular season? Unless Coach Prime and the Colorado athletic director misspoke, it certainly sounds like the policy was purchased specifically for the Alamo Bowl.
If that’s the case, it means that Colorado’s stars were uninsured for the entire regular season. Shedeur took a dangerous hit against the Kansas Jayhawks on Nov. 23. If he’d torn his ACL, he’d almost certainly drop in the draft, costing him millions. And yet, it seems that he wasn’t insured during the regular season.
According to Giller, another issue with the timing is that if this is a new insurance policy, there’s a chance it could include an exclusion for prior injuries.
Hunter missed time with a shoulder injury this season. If he aggravates that injury severely enough to cause him to miss the NFL Combine or drop in the draft, there’s no guarantee this policy will cover that financial loss.
Sportico reported last season that Hunter was uninsured when he lacerated his liver.
In that report, the website stated that the school scrambled to get insurance but never stated if it followed through.
This announcement makes me question whether Sanders, Hunter or any of the other draftable Buffaloes have ever been covered before now.
Does Colorado’s Policy Actually Cover Hunter and Sanders If They Fall in the 2025 NFL Draft?
Breslin didn’t get his payout because, despite electing coverage with the help of USC, his policy didn’t contain a “loss-of-value” rider. Giller explained that many of these policies only cover permanent total disability without a loss-of-value rider. Basically, it might not cover what the athletes think it will cover.
“Permanent total disability insurance has been around for hundreds of years, and anyone can take out a PTD policy,” Giller explained. “What it says is for whatever reason you get injured during the policy period and that injury causes you to not be able to continue in your profession then you get a lump sum payment.”
However, Giller explained that many PTD policies don’t cover loss of value. If a player with a PTD policy without a loss-of-value rider gets injured, he won’t get a payout unless that injury is career-ending.
If a player loses money because his draft stock falls due to injury, he’ll only get a payout up to the value of his loss-of-value rider, which isn’t always active on a PTD policy.
So, Giller wonders if Colorado’s players have the coverage they believe they have. If Sanders gets hurt and drops out of the first round, can he recoup any lost earnings? Caleb Williams’ rookie contract is worth nearly $20 million more as the first pick than J.J. McCarthy’s as the 10th pick in last year’s draft. A short drop can mean millions of dollars lost.
What about Will Sheppard, a wide receiver I like as a mid-round pick? Can he collect on his lost earnings if he’s injured and falls out of the draft?
Should Colorado’s Disability Insurance Give Players Peace of Mind?
This is a question that only the players can answer.
As Giller pointed out, players tend to get injured when they think about getting injured. They often feel invincible, but many opt out of bowls. Giller encourages this.
“I’ve been a loud proponent of suggesting that any athlete [opt-out],” Giller said. “I don’t care what bowl game, if you’re a potential first or second-round NFL draft pick, do not play in the bowl game; there is literally nothing for you to gain.”
He went on to point out that even if there are loss-of-value numbers as high as he’s ever seen in a policy on Hunter or Sanders ($10 or $20 million, in his experience), they’d lose money in the long run. Since the school is paying, any money paid out might be taxed at the player’s marginal rate, probably 40% for a first-round pick.
In Giller’s opinion, any star playing in a bowl game is risking his financial future. Some players might be okay with that, but the decision needs to be made independent of the existence of a broad insurance policy.
Should Sanders and Hunter Play in the Alamo Bowl?
In my opinion, a player’s decision to play in the postseason shouldn’t depend on whether or not he’s insured.
If Hunter, Sanders, and the other draftable Colorado players already planned to play in the Alamo Bowl, being insured shouldn’t change that. They shouldn’t change how they play simply because they have a few more protections. Doing so would increase injury risk.
But if they’d planned to opt out and were persuaded to play by an insurance policy that might not cover them, there could be serious repercussions down the road. That’s especially true if a star gets hurt and isn’t covered in how he thought he’d be.
It’s a personal decision. For Hunter and Sanders, it’s complicated because Coach Prime is their coach. If they’re completely prepared to play one last college game, regardless of injury risk and coverage, they should go set records.
If they have any second thoughts, the reward isn’t worth the risk.
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