Very interesting. Offers insight on why he hasn't been medically cleared yet. AP sources: $5M insurance payout awaits Florida's Johnson "A University of Florida basketball player who collapsed during a game last December is deciding whether to try and get medically cleared to play professionally or cash in a $5 million insurance policy. "Johnson, the Southeastern Conference's preseason player of the year in 2020, has turned his attention toward pursing a potential NBA career, one person said. He would need medical clearance — something that hasn't happened in the 11 months since his collapse — and then pass any number of tests before being allowed to attend next year’s NBA Combine and/or privately work out for teams. "Johnson’s policy provides him enough flexibility to take steps toward playing professionally and still be able to reverse course and make an insurance claim, one of the people said. If he does trigger the insurance policy that Florida paid the premiums on, there’s an option for him to take the $5 million as a lump sum. There’s no timetable or deadline for Johnson to make a decision on his future. "If he doesn't play again, Johnson has the lucrative policy to offset the loss of future earnings.
It’s good to know he’s set for life either way with even decent money management, makes me feel a bit better about his future. I know he really wants to play, but this is a pretty good backup. With the specialists that were called in from some of the best medical schools in the country, it’s surprising they haven’t been able to figure it out, that has to be incredibly frustrating.
Glad he’s got something. But if he lives 50 more years that averages $100K/year. I don’t know how, or if, inflation is figured in, but in 50 years who knows what that will buy
I mean… guy is 20 something years old. He doesn’t have to sit on his ass for 50 years if he can’t play basketball. He should have other income possibilities, whether coaching or in a real career 5 million gets him a good head start, considering most people don’t make that in a lifetime. I’m sure a pro career would have been more lucrative, but it still gets him right out of the gate with pretty good wealth basically before he even starts his life. Though if your point is he has to be smart with it I agree (some athletes lose grip on reality and somehow blow through $100 million like it’s nothing).
No, he'd invest that money. Even a modest 3% return would = $150,000 per year in taxable income with nearly 0% risk of principal. Invest in real estate and the returns are a bit higher with the possibility of capital appreciation and inflation protection. Of course, there are even better returns out there, but it'll likely come with risk of capital. PLUS, he's going to make a living doing something. Point is: $5MM is more than enough to live a very comfortable life. Happy for Key in that sense! PS - I am not a tax expert, so not sure if that insurance payout is taxable or not.
Wish he would decide and if he takes the $, that would free up a ship so CMW can get us another 2-3* from the portal. BTW, I am dreading f$u coming to the O’Dome next weekend with four (4) players 7 foot or taller!
This brings up an interesting subject. I wonder if UF has a program or class for its athletes to talk about short-term and long-term financial security. Probably most of these young men and women have never gotten any instruction on even the simplest things, such as managing a budget, much less on starting a small business or investing.
So wrong. There is undoubtedly language in the policy that precludes him from earning $$ playing basketball, if they paid him benefits because he couldn't play basketball. However, I doubt the policy would preclude him from earning a living in a multitude of other ventures. Not to mention that if he suits up the next day, they're coming after him for insurance fraud.
We need a cpa! My understanding is that if a disability policy replaces income, the payments are taxable. It probably depends on thebpolicy. If whatever the balance is that he receives, its nowhere close to what he could earn professionally. Hopefully he's getting good advice.
