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View Full Version : Oklahoma State spent $33 million on life insurance for boosters



RhodyYanksFan
03-20-12, 02:03 PM
This is pretty bad.

http://deadspin.com/5894864/oklahoma-state-gambled-millions-that-its-boosters-would-die-and-lost


Back in 2007, on the advice of Pickens, the Cowboys athletic department purchased policies for 27 of their very biggest fans. Most were donors and season ticket holders, and all were over the age of 65. Upon an insured donor's death, Lincoln Financial would pay out $10 million to the sole beneficiary, the OSU athletic department. It was called the "Gift of a Lifetime" program, and it was a wager, like all life insurance, but presumably the actuarial tables were in the university's favor.

Then, no one died.

For two years, no one died, and OSU was on the hook for the annual premiums, to the tune of $33 million. So in 2009 the school canceled the program, accepting that betting on and hoping for the deaths of its donors was "morally bankrupt" and a financial failure.

Yankee Fan in Boston
03-20-12, 02:09 PM
This is pretty bad.

http://deadspin.com/5894864/oklahoma-state-gambled-millions-that-its-boosters-would-die-and-lost



So in 2009 the school canceled the program, accepting that betting on and hoping for the deaths of its donors was "morally bankrupt" and a financial failure.

One has to wonder if they would have been concerned with "moral bankruptcy" had they benefited more financially

RhodyYanksFan
03-20-12, 02:31 PM
One has to wonder if they would have been concerned with "moral bankruptcy" had they benefited more financially

Yeah, they only sued once nobody died.