SportBusiness.com

MLB faces player insurance hikes

Insurance premiums for Major League Baseball (MLB) contracts will go up an average of 250 percent this year, executives at some of baseball’s major franchises have claimed.

According to a report in the New York Daily Post, insurance costs are becoming major budgetary considerations for teams already facing an uncertain financial future.

For a player signing a $100million (B113m) deal the cost of insuring that contract could rise to roughly $7.35m (B8.3m) from $2.m (B2.3m), depending on the age, position and health of the player, the newspaper said.

Insurance policies generally cover 60-80 percent of a contract's total value and the increasing costs could encourage teams to sign players to shorter contracts, industry analysts concluded.
An article on the increasing cost of player insurance worldwide will feature in the December issue of SportBusiness International.