Colorado football coach Deion Sanders made headlines last month by announcing that the university had secured record-setting insurance coverage for Heisman Trophy winner Travis Hunter and quarterback Shedeur Sanders. Now, newly obtained documents provide deeper insight into the policies purchased for these star players, particularly before their final college game in the Alamo Bowl.
While the school had already arranged $20 million in permanent total disability (PTD) coverage for each player for the 2024 season, it added an extra $1 million for the bowl game. This move raised eyebrows in the sports insurance industry, as experts questioned the necessity of adding such a small increment to an already substantial policy.
Colorado’s Insurance Coverage for Hunter and Sanders
Existing Coverage for the 2024 Season
- Colorado had previously secured $20 million in PTD insurance for each player, covering the period from August 2024 onward.
- The policy also included up to $250,000 in critical injury riders for injuries such as a torn Achilles tendon.
Additional Coverage for the Alamo Bowl
- On December 18, 2024, the university added $1 million in extra PTD coverage specifically for the Valero Alamo Bowl on December 28.
- The total coverage for Hunter and Sanders temporarily rose to $21 million before returning to $20 million after the game.
- The extra $1 million in coverage cost $1,030 each in premiums.
- The existing $20 million policy had premiums of approximately $166,000 per player for the year.
Why Was the Extra $1 Million Added?
Unusual Move in Sports Insurance
Many industry experts found it puzzling that Colorado added just $1 million in extra coverage when they already had $20 million in place.
Richard Giller, a prominent sports insurance attorney, reviewed the documents and questioned the decision:
“It doesn’t make a whole lot of sense. I don’t see the reason other than maybe just wanting to say they had $21 million, which is $1 million more than most of the other policies around?”
Deion Sanders had previously claimed that the insurance coverage was the highest ever in college football history, a statement that Colorado athletic director Rick George supported. However, some experts, such as Eric Chenowith, who specializes in sports insurance, noted that there had been larger policies issued in the past, including one worth $26 million in 2023.
Risk vs. Reward: Why Did Hunter and Sanders Play?
For many college athletes, the financial risk of playing in a bowl game outweighs the reward, especially when they are projected to be top NFL draft picks. Some high-profile players skip bowl games to protect their future earnings, as a serious injury could cost them millions in NFL contracts and endorsements.
Potential Financial Impact of Injury
- If Hunter or Sanders had suffered a career-ending injury, they could have collected up to $21 million from their insurance.
- However, both players are projected to be top draft picks in the 2025 NFL Draft, meaning their future earnings could far exceed the payout.
- Example: Last year’s No. 1 overall pick, Caleb Williams, signed a four-year, $40 million contract.
Despite the financial risks, both Hunter and Sanders chose to play in the Alamo Bowl rather than sit out, showing their commitment to their team.
Colorado’s decision to add $1 million in extra coverage for Travis Hunter and Shedeur Sanders before the Alamo Bowl has sparked debate among insurance experts. While Deion Sanders and the university claimed it was the highest coverage in college football history, some industry professionals dispute that claim.
Ultimately, Hunter and Sanders valued playing in their final college game more than the financial risks involved. While many players opt out of bowl games to protect their future earnings, these two stars took the field, fully aware of the potential consequences. Fortunately, neither suffered a serious injury, and both are expected to be top picks in the upcoming NFL Draft.
