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Union paid $44 million for lockout insurance

NFL Lockout Looms As Negotiations Are Extended

A general view of Arrowhead Stadium as the NFL lockout looms while negotiations are extended on March 4, 2011 at Arrowhead Stadium in Kansas City, Missouri.

Jamie Squire

Last year, in the midst of the lockout, a report emerged that the NFLPA had purchased “lockout insurance.”

It seemed far-fetched at the time, and few with knowledge of the insurance industry believed that the union could have found someone to underwrite a policy that would have paid out, as it turned out, $200,000 per player in the event the full 2011 season were scrapped.

In the aftermath of the lockout, we reported that the lockout insurance cost nearly $50 million. Daniel Kaplan of SportsBusiness Journal reports that the union’s tax return for the period ending March 31, 2011 reveals an expenditure of $44 million for lockout insurance.

The premiums took the union from a profit of more than $20 million to a loss of more than $20 million for the fiscal year.

Also, NFLPA executive director DeMaurice Smith earned $2.38 million, far less than the amounts the late Gene Upshaw received in the final years of his tenure. Also, more than $6 million was paid to outside lawyers.