Cincinnati Bengals linebacker Malik Jefferson is suing for loss-of-value insurance that was denied to him.
The policy was taken out prior to the 2018 NFL Draft, a draft that saw the former Texas linebacker drop to the third round. Jefferson was selected by the Bengals with the 78th overall selection.
Per Forbes, being selected outside of the first two rounds could damage a players’ initial contract value.
Furthermore, first-round players have exclusive fifth-year options in their contracts; players drafted in Rounds 3-7 are only eligible for a proven performance escalator (PPE).
Both the length and value of Jefferson’s contract took a hit. And, the insurance policy, which he took out from Novae Corporate Underwriting Limited and Neon Underwriting Limited, was supposed to reimburse him in this situation. The policy was worth over $2 million.
However, per Yahoo, the claim was denied because of other circumstances that could’ve led to Jefferson not being drafted within the first 60 picks. The company claimed Jefferson’s value slipped for other reasons than the toe injury he sustained during a 2017 collegiate game.
That said, Jefferson, who claimed the toe injury impact his draft range, is suing the company for the loss-of-value insurance that he was never awarded.
The dispute has yet to be resolved.
