After going undrafted, former USC linebacker Morgan Breslin may be in line to collect between $750,000 to $1 million as the first collegiate football player to receive a payout on a loss of value insurance policy, according to an industry source.
Breslin, a 6-foot-1, 240-pound pass-rush specialist, missed more than 75 percent of USC's games over the past two years after finishing third in the nation in sacks (13) during the 2012 season. He signed a free-agent deal with the San Francisco 49ers this past weekend.
The potential first-day pick two seasons ago took out a loss of value policy in the summer of 2013 that provided him with $2 million to $3 million worth of coverage in the event an injury caused his draft stock to fall. After missing all but five games during the 2013 season due to a sports hernia, Breslin underwent hip surgery and wasn't invited to the NFL scouting combine in February.
While unable to discuss the specifics of Breslin's policy, Chris Larcheveque, executive vice president of International Specialty Insurance, told Yahoo Sports that Breslin's precipitous drop on teams' boards appeared to be related, at least in part, to his serious injury. He indicated that prior to Breslin's surgery he was viewed as one of the premier pass rushers eligible for the 2014 draft.
USC's Marqise Lee – once considered a lock to be taken in the first round of the draft before falling to the Jacksonville Jaguars with the seventh pick in the second round – also purchased a disability and loss of value policy prior to his final season in Los Angeles, which was reportedly worth $10 million.
Policies similar to Breslin's would carry a yearly premium in the range of $30,000 to $35,000, which industry sources say most players have to obtain financing for. Policies similar to Lee's would be in the range of $90,000 to $105,000.
Though Lee's situation isn't as clear-cut as Breslin's, he is eligible to collect on more than $4 million if he can prove his drop was tied to injury. Lee suffered a grade one MCL sprain last year against Arizona State and missed three games as a result.
Larcheveque said Lee's ability to collect on the policy will ultimately be determined by insurance underwriters in London.
Highly-rated college football players with remaining eligibility are frequently purchasing disability and loss of value insurance policies to provide some financial protection should they injure themselves prior to the NFL draft. Yahoo Sports reported that UCLA rising sophomore RB/LB Myles Jack, Oregon redshirt junior quarterback Marcus Mariota and rising junior defensive lineman Arik Armstead all purchased insurance policies with coverage in excess of $5 million.