Page 1 of 2 12 LastLast
Results 1 to 15 of 27
  1. #1
    Legend
    Points: 176,869, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 12.0%
    Achievements:
    SocialVeteran50000 Experience Points
    The_Architect's Avatar
    Join Date
    Apr 2006
    Location
    Focus Town
    Posts
    12,314
    Points
    176,869
    Level
    100
    Thumbs Up
    Received: 739
    Given: 3,147

    Oklahoma State's "Death Gamble" - catastrophic failure.

    5 years later and I still cannot believe they did this. Looks like their moral bankruptcy has come back to bite them in the ***:

    OSU Cowboys' Death Wish Goes Unanswered, Lose $33 Million - Forbes


    Kansas wears Adidas.

  2. #2
    Starter
    Points: 19,518, Level: 42
    Level completed: 64%, Points required for next Level: 332
    Overall activity: 14.0%
    Achievements:
    Veteran10000 Experience Points

    Join Date
    Apr 2006
    Posts
    965
    Points
    19,518
    Level
    42
    Thumbs Up
    Received: 0
    Given: 0

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    Hadn't heard of that until 5 minutes ago. Wow



  3. #3
    Speechless
    Points: 919,135, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 58.0%
    Achievements:
    SocialVeteranCreated Album pictures50000 Experience PointsOverdrive
    CycloneErik's Avatar
    Join Date
    Jan 2008
    Location
    Jamerica
    Posts
    61,643
    Points
    919,135
    Level
    100
    Thumbs Up
    Received: 5,927
    Given: 4,987

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    I missed that one. It's bold.


    Kansas Must Be Destroyed

    Sic Semper Jayhawks




    http://rememberingdoria.wordpress.com/

  4. #4
    Pro
    Points: 28,026, Level: 51
    Level completed: 44%, Points required for next Level: 624
    Overall activity: 3.0%
    Achievements:
    Veteran25000 Experience Points

    Join Date
    Apr 2006
    Location
    southern iowa
    Posts
    2,904
    Points
    28,026
    Level
    51
    Thumbs Up
    Received: 158
    Given: 334

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    Wow, is this common practice for universities?


    Go Cyclones!!

  5. #5
    All-Star
    Points: 33,921, Level: 56
    Level completed: 73%, Points required for next Level: 329
    Overall activity: 4.0%
    Achievements:
    Veteran25000 Experience Points
    F5cy's Avatar
    Join Date
    May 2011
    Location
    Washington, D.C.
    Posts
    1,382
    Points
    33,921
    Level
    56
    Thumbs Up
    Received: 282
    Given: 119

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    Quote Originally Posted by jay moe View Post
    Wow, is this common practice for universities?
    Its common practice for many more businesses than you would imagine, but first ive heard of a university doing it.



  6. #6
    Speechless
    Points: 919,135, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 58.0%
    Achievements:
    SocialVeteranCreated Album pictures50000 Experience PointsOverdrive
    CycloneErik's Avatar
    Join Date
    Jan 2008
    Location
    Jamerica
    Posts
    61,643
    Points
    919,135
    Level
    100
    Thumbs Up
    Received: 5,927
    Given: 4,987

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    We discussed doing this for Annual Training at drill a long time ago. I was a little concerned, because everyone picked my team chief as the guy we wanted to take out. I had to remind them that I get dibs, since I actually had to deal with him.


    Kansas Must Be Destroyed

    Sic Semper Jayhawks




    http://rememberingdoria.wordpress.com/

  7. #7
    Pro
    Points: 41,357, Level: 62
    Level completed: 78%, Points required for next Level: 293
    Overall activity: 0%
    Achievements:
    Social25000 Experience PointsVeteran
    CyLoboClone's Avatar
    Join Date
    Oct 2009
    Location
    Albuquerque
    Posts
    2,515
    Points
    41,357
    Level
    62
    Thumbs Up
    Received: 20
    Given: 22

    Re:Oklahoma State's "Death Gamble" - catastrophic failure.

    So weird- and it is nice when it backfires on the corp that does this crap.



  8. #8
    Pro
    Points: 62,925, Level: 77
    Level completed: 80%, Points required for next Level: 325
    Overall activity: 7.0%
    Achievements:
    Veteran50000 Experience Points
    intrepid27's Avatar
    Join Date
    Oct 2006
    Location
    Marion, IA
    Posts
    2,842
    Points
    62,925
    Level
    77
    Thumbs Up
    Received: 269
    Given: 335

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    I remember when they did that a few years ago. I believe Boone Pickens was leading the charge and encouraging others to do the same. I did not realize that the University was paying the premium.


    Stay breathing my friend.



  9. #9
    Hall-Of-Famer
    Points: 84,703, Level: 90
    Level completed: 53%, Points required for next Level: 847
    Overall activity: 0%
    Achievements:
    Veteran50000 Experience PointsCreated Album pictures
    azepp's Avatar
    Join Date
    Dec 2009
    Location
    Ankeny
    Posts
    3,964
    Points
    84,703
    Level
    90
    Thumbs Up
    Received: 185
    Given: 128

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    Quote Originally Posted by F5cy View Post
    Its common practice for many more businesses than you would imagine, but first ive heard of a university doing it.
    Businesses do it to try and cover (a) losses that would be sustained if they lost a key person and (b) the cost to replace that key person. This article makes it sound like this was an attempt by the university to make a dime by playing the odds that some of their boosters would die (maybe it's just the spin the writers used, but that's how it comes off). Betting against the insurance companies is like betting against Vegas.

    In any case, if these boosters were really so big and valuable, doesn't it seem like they'd probably be writing the OSU AD into their wills anyway?



  10. #10
    Addict
    Points: 148,628, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 1.0%
    Achievements:
    SocialVeteranCreated Album pictures50000 Experience Points
    jaretac's Avatar
    Join Date
    Nov 2006
    Location
    Frigidaire
    Posts
    7,643
    Points
    148,628
    Level
    100
    Thumbs Up
    Received: 5
    Given: 0

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    OSU has really made some really bad investments.



  11. #11
    Burgermeister!
    Points: 374,908, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 10.0%
    Achievements:
    SocialVeteran50000 Experience Points
    TykeClone's Avatar
    Join Date
    Oct 2006
    Posts
    23,891
    Points
    374,908
    Level
    100
    Thumbs Up
    Received: 882
    Given: 1,352

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    The athletics department took out $10 million life insurance policies on 27 boosters, between the ages of 65 and 85. The school had projected related revenues could be as high as $350 million, but apparently the boosters were taking their vitamins. Not a single insured booster died after two years, leading the athletics department to cancel the plan in 2009. Unfortunately for the Cowboys, they had shelled out $33 million in that time.
    I think that's where the problem was - over 2 years, they'd have needed 3 or more of their top boosters to die to break even.

    What was their mortality rate leading up to this decision for their top-50 donors? I'll bet it was lower than the 5%/year required.


    Asteroids are nature's way of asking "How's that space program going?"

  12. #12
    Addict
    Points: 59,322, Level: 75
    Level completed: 52%, Points required for next Level: 728
    Overall activity: 2.0%
    Achievements:
    Veteran50000 Experience Points
    pulse's Avatar
    Join Date
    Mar 2006
    Posts
    5,205
    Points
    59,322
    Level
    75
    Thumbs Up
    Received: 196
    Given: 136

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    That's messed up.



  13. #13
    Bench Warmer
    Points: 11,962, Level: 33
    Level completed: 2%, Points required for next Level: 688
    Overall activity: 0%
    Achievements:
    Veteran10000 Experience Points
    Jnecker4cy's Avatar
    Join Date
    Aug 2006
    Location
    Ankeny, IA
    Posts
    295
    Points
    11,962
    Level
    33
    Thumbs Up
    Received: 1
    Given: 0

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    Quote Originally Posted by TykeClone View Post
    I think that's where the problem was - over 2 years, they'd have needed 3 or more of their top boosters to die to break even.

    What was their mortality rate leading up to this decision for their top-50 donors? I'll bet it was lower than the 5%/year required.
    I am not even sure that what they did was ethical. To get life insurance on a person you have to show insurable interests, such as Husband and Wife, or Kids, or Key-person for a business. I just do not see it. Insuring a donor to make money for an athletic department seems like a real loose definition of Insurable Interest. Would have been interesting to see how a payout would have been handled on that type of plan.


    Many Years Of Cyclone Logos


  14. #14
    Pro
    Points: 71,676, Level: 83
    Level completed: 14%, Points required for next Level: 1,474
    Overall activity: 3.0%
    Achievements:
    Veteran50000 Experience Points
    CycloneWarning's Avatar
    Join Date
    Jan 2008
    Posts
    2,650
    Points
    71,676
    Level
    83
    Thumbs Up
    Received: 152
    Given: 73

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    Quote Originally Posted by TykeClone View Post
    I think that's where the problem was - over 2 years, they'd have needed 3 or more of their top boosters to die to break even.

    What was their mortality rate leading up to this decision for their top-50 donors? I'll bet it was lower than the 5%/year required.
    Yes, this is weird. I am going to get $10 million for each of a group of 27 that dies, but it costs me $16.5 million a year? So I need 2 people to die each year just to make anything really? Wow, a University should not be doing this kind of stuff with their big donors.

    I suppose the donors were informed and consented?? If not, that is really jacked up.



  15. #15
    Addict
    Points: 87,246, Level: 91
    Level completed: 90%, Points required for next Level: 204
    Overall activity: 13.0%
    Achievements:
    Veteran50000 Experience Points

    Join Date
    Apr 2006
    Posts
    6,772
    Points
    87,246
    Level
    91
    Thumbs Up
    Received: 438
    Given: 0

    Re: Oklahoma State's "Death Gamble" - catastrophic failure.

    Just like Vegas, the odds will always be against you. You don't think an insurance company knows what they're doing?



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
  • TV: Cyclones.TV
  • FOOTBALL: Iowa State vs. UNI
  • September 5, 2015
  • 07:00 PM