RealGM

A Houston fan posted on the Trade Board that McGrady's contract, like Mobley's, was 80% insured.

I can't believe that insurance would continue to be paid once he resumes playing. So I figured I would ask the Houston fans what the story is.

I don't know if anyone knows the true answer, and it may be very complicated.

He was being covered by insurance before he started playing for the Rockets again. Under the current situation, I THINK that he is no longer covered.

But I really don't know for certain.

Yea he played for the Rockets this season so I don't think its covered anymore.

This has been a strange issue in which no one seems to have the answer (especially the local "experts").

The way that McGrady's deal worked was that once he missed 41 consecutive regular season games, the insurance coverage of his contract kicked in, and from that point on for every game McGrady missed it would be partially covered by insurance.

What that percentage is we do not seem to have a clear answer. I don't believe that it is the full 80% anymore; however, it is substantial enough to make Les Alexander feel just fine with letting McGrady's deal expire rather than make a hasty move in which we'd bring in a guy with a long-term contract who may be up there in the years (think Rip Hamilton or Michael Redd as examples).

Jonathan Feignen of the Houston Chronicle reported back in December that McGrady's deal was going to be partially covered by insurance for every game he missed - regardless of the reason - once 41 games passed. That has been disputed, and the details never clarified; but I do think that it does remain, in some way, covered at this point.

Bottom line is that whatever it is, or it is not, our GM, Daryl Morey, will not move that contract simply to move it. He's the type that will be perfectly content to let it expire rather than sacrifice what he sees as assets for acquisitions which he feels do not have comparable monetary value. Part of that comfort level may come from insurance coverage...or it may not.

Sorry, man - that's about as clear an answer as I am aware of!

Below is a post from another thread by an attorney (DAHEATA is his name on the site) regarding the same argument as to insurance:

I couldn't find the actual text of the policy, however this is the website for the NBA's disability insurance carrier. http://www.bwdgroup.com/Sports/Disabili ... &Parent=22

This is relevant text from the website:

Temporary Total Disability (TTD)
Temporary Total Disability coverage provides benefits on a daily or monthly basis to an individual or an organization when an accidental injury or an illness prevents an individual from performing the duties of his/her occupation on a temporary basis.
This coverage may be purchased as asset value or contract protection, to protect the future earning potential of an individual or future revenues of an organization against losses resulting from injury or illness. The amount insured under a contract protection policy would be the amount of compensation under an employment or performance contract.

There is nothing preventing Tracy McGrady from performing the duties of his occupation except his team's unwillingness to play him. Sometimes people who write articles don't actually know what they are talking about. I'm just trying to clear up some confusion, but again, believe what you want.
clydewally
Junior

Posts: 254
Joined: Wed Jun 27, 2007 10:00 pm

Here's a link to a thread on ClutchFans that you might find interesting, clydewally:

http://bbs.clutchfans.net/showthread.ph ... ge=1&pp=20

You'll see some interesting discussion on this issue and some facts that were pretty eye-opening for me. From what I can tell here and elsewhere it does seem that McGrady's deal is still covered by insurance, but the amount is unknown.

at this point I'd say that only the Rockets, McGrady & the NBA's insurance company covering these contracts know all of the details here, and none of them are talking about it in any detail. It really sounds as if McGrady is just a small part of a much, much bigger picture regarding the NBA and their highly-paid/insured players.