Кейс: «Claimgame» From the print edition: Finance and economics

The calculations behind the insurance of athletes

WHEN Alex Rodríguez, baseball’s highest-paid player, announced last month that he needed hip surgery, it wasn’t just the New York Yankees that groaned. The biggest share of the resulting financial pain may well be felt by Team Scotti, the lead insurer on his ten-year, $275m contract. If Mr. Rodríguez can recover by midsummer, the firm will escape unharmed since most policies do not pay out until a player has been sidelined for at least a few months. But if his injury drags on, it could make it harder for teams to get coverage—and thus harder for athletes to extract similarly lucrative contracts in the future.

Вопросы к кейсу:

 1. Examine the situation and find out the main problem of the article.

 2. Highlight the key factors of the current problem.

3. What forms of insurance financing of sport projects are used by the insurer?

4. Explain the mechanism of the effect of the insurance company to developing of professional sport technologies.

5. Do you agree that the current situation needs changing?

 6. What decision would you take to solve this problem successfully? Justify your replies