The New York Mets received just about the worst news possible on Johan Santana yesterday, learning that he's likely headed for a second reconstructive shoulder surgery, putting not only this season but also his career in jeopardy. The only thing that could make things worse for the organization would be if they didn't have his (at the time) record contract insured externally.
But there's no way that happ... What? They didn't?... Oh.
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The Mets did not insure Santana's contract, instead electing to "self-insure" the deal by creating a "rainy-day fund" in case a key player went down with an injury, reports Adam Rubin of ESPN.
While declining insurance from an external company likely saves the Mets a couple million bucks annually, it also means that they are now on the hook for all $31 million in salary owed to Santana -- $25.5MM for 2013 and $5.5MM for his buyout. Foresight!
If the Mets had taken out insurance on Santana, it's likely the policy would have only covered a major injury had it originally occurred within the first three years of the contract. Since Santana tore his anterior capsule at the end of 2010 -- his third season with the Mets -- then it's very probable this recurrence of the injury would have been covered. The policy would have picked up the remainder of his salary after the deductible period, which is usually 60 to 90 days of DL time.
As it stands, the Mets will not be saving any cash, so it's a good thing they've been so smart with their money in all their other ventures.
... What's that now?