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Max Scherzer took out an insurance policy after rejecting contract extension from Tigers

Jun 8, 2014, 9:49 PM EDT

Max Scherzer Getty Getty Images

You might remember that Tigers right-hander and 2013 AL Cy Young Award winner Max Scherzer rejected a six-year, $144 million contract extension from the Tigers in the spring. It was a calculated risk for a pitcher who could hit it big on the free agent market this winter. However, he has a Plan B if something goes terribly awry in the coming months.

Tom Verducci of SI.com has the story:

Scherzer revealed to SI.com that he took out an insurance policy that covers lost potential earnings if he is injured prior to hitting the free agent market this winter.

“This takes the injury risk out of it,” said Scherzer, who did not specify if the policy covered all or most of the $144 million.

It’s not like Scherzer will be hard-up for cash if hurts his arm tomorrow and never plays again. Including this year’s $15.525 million salary, he has made almost $30 million during his career. Still, it’s a smart and logical move for him. This kind of thing is probably more common than we realize, though Scherzer’s situation obviously commands more attention since he could fetch a $200 million deal this winter if all goes according to plan for him and his agent Scott Boras.

SportsDash: Jeff Passan explains why Scherzer’s arm is so expensive

  1. bostonfrogs - Jun 8, 2014 at 10:21 PM

    He may have differently colored eyes, but rest assured that both of them are solidly focused on money.

  2. jayquintana - Jun 8, 2014 at 10:48 PM

    What kind of contract is he expecting? I wouldn’t give him Kershaw money.

  3. wetmorepsu12 - Jun 8, 2014 at 11:07 PM

    I’ve always wondered how much these insurance policies cost.

    • 18thstreet - Jun 9, 2014 at 9:18 AM

      I didn’t even know they existed.

      This makes it a lot harder to understand why the young player on the Astros signed that team-friendly contract.

      • sportsdrenched - Jun 9, 2014 at 10:34 AM

        Lloyd’s of London will insure just about anything you want provided an actuary can justify the value of the policy.

  4. natsattack - Jun 8, 2014 at 11:09 PM

    Smart guy, though I don’t see what difference an extras ~50 million will do for a guy with that kind of salary. Also, why don’t players like Jon Singleton have that kind of arrangement, or is a least encouraged to by the union?

  5. smarshall3789 - Jun 8, 2014 at 11:51 PM

    I’m gonna laugh when he bolts the Tigers for 200 mill and lays a complete egg. I don’t understand why he would want to leave. He’s best behind Verlander I don’t understand us Detroiters love this guy.

  6. miguelcairo - Jun 9, 2014 at 12:20 AM

    It’s quite likely that last year’s Cy Young award season was the best he’ll ever have.
    Can’t say I see Kershaw money either.

  7. seanb20124 - Jun 9, 2014 at 6:35 AM

    An extra 50 million is a lot, see Antoine Walker and Allen Iverson

    • neoshweaty - Jun 9, 2014 at 12:39 PM

      I read that Iverson has about 50 million headed his way once he turns 50 or something like that. I think somewhere down the line someone on his team (maybe even AI) realized that he was stupid with money so took a ton of his money and put it away in a manner that he can’t touch it until he is presumably wiser.

  8. sportsnut1197 - Jun 9, 2014 at 7:26 AM

    #scottboras that guy is gonna be the death of baseball

    • 18thstreet - Jun 9, 2014 at 9:19 AM

      Shouldn’t he have succeeded by now?

    • neoshweaty - Jun 9, 2014 at 12:42 PM

      Is Boras not supposed to do all he can to secure the long term financial health of his clients? I don’t get the hate against him. He sounds like the exact person I would want fighting for every cent. Remember, it’s not that long ago that owners fought tooth and nail against free agency and colluded to keep free agent contract prices low.

  9. southpaw2k - Jun 9, 2014 at 8:53 AM

    The problem with Scherzer’s plan is that it doesn’t take into account the fact that, over his last 5 starts, his ERA has increased from 1.83 to 3.38. His ERA at the moment is still respectable, but I doubt he’d get any contract offers close to $144 million, much less Kershaw money (especially considering Scherzer is about to turn 30 in July and Kershaw just turned 26 in March).

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