Two players who slipped past the first round of the NFL draft on Thursday could benefit from insurance policies they took out while still in college.
Former UCLA linebacker Myles Jack is covered by a $5 million loss-of-value policy. When his mother took it out two years ago, Jack became the first sophomore college football player ever to secure such a policy.
A source with knowledge of the policy says that Jack will start to collect if he falls to the 45th pick in the draft and will get about $60,000 per pick after that. That means Jack will collect north of $1 million if he slips into the third round, but he would have to fall into the early sixth round to collect the entire policy.
As previously reported, former Notre Dame linebacker Jaylon Smith took out an insurance policy in the fall that would pay up to $5 million if he got hurt and slipped in the draft. Smith then seriously injured his knee in the Fiesta Bowl.
A source with knowledge of the policy said that Smith will receive a tax-free $700,000 if he becomes the top pick in the second round. If he is selected later than that, he'll collect an additional $100,000 for each spot he falls.
Last year, Oregon's Ifo Ekpre-Olomu collected the full $3 million afforded by his loss-of-value insurance policy. A projected first-round draft pick, Olomu fell to the seventh round after sustaining a knee injury. It was the largest payout ever from a loss-of-value policy.
If Smith drops below the 55th pick, his payout would pass Ekpre-Olomu's ($3.1 million). Jack would have to fall into the fourth round to get that amount.
Players selected in Thursday's first round will receive between $6 million and $26 million guaranteed.