Oklahoma State Gambled Millions That Its Boosters Would Die, And Lost

[Kung Wu]

I read it as they are questioning is what they did morally and ethically wrong? I dont think so, since to me it seems the same as life insurance. Now to your point of is it stupid if it causes great financial loss (bankrupt, etc.), thats on Boone or whoever saw the numbers and decided to take the risk. I agree it looks stupid, but as @1972Shocker: said, thats hindsight. Since we don't know the ages/health of the donors, one could argue that OSU pulled the plug on the investment/risk too soon. We'll never know.

I do find it ironic that the story is being reported on "dead"spin.

I see, you were focused on the morals and ethics. I guess from that aspect its how you look at it, but I consider insurance to be a hedge against some unexpected life occurance that causes severe hardship, not a profit opportunity. I do see your point though.

[The Mad Hatter]

I see, you were focused on the morals and ethics. I guess from that aspect its how you look at it, but I consider insurance to be a hedge against some unexpected life occurance that causes severe hardship, not a profit opportunity. I do see your point though.

I think it would have been unethical to take out insurance on your elderly boosters without their knowledge or consent, but as it stands, it was just stupid.

[jocoshock]

I worked for a company about 20 years ago, that proudly proclaimed "our employees are our most important asset." Very heart warming, until they came around asking us to sign forms allowing them to take life insurance policies out on us.... very creepy...

[Kung Wu]

I worked for a company about 20 years ago, that proudly proclaimed "our employees are our most important asset." Very heart warming, until they came around asking us to sign forms allowing them to take life insurance policies out on us.... very creepy...

LMAO. Was that back when you worked in the coal mines?

[Wu du Nord]

When a guy who has donated over 400 million dollars to your university, sports teams and facilities 'suggests' you do something...

[jocoshock]

LMAO. Was that back when you worked in the coal mines?

Close...the phone company.....

[Rlh04d]

I worked for a company about 20 years ago, that proudly proclaimed "our employees are our most important asset." Very heart warming, until they came around asking us to sign forms allowing them to take life insurance policies out on us.... very creepy...

Makes sense. Most companies take out insurance on their physical equipment. To most companies, there isn't a lot of difference between employees and machines.

I took a Sports Economics class back in college that I thought was really interesting. One of my favorite items was that teams are able to claim deterioration of players on their taxes, much as if they were a piece of manufacturing equipment that was wearing down over time.

[1979Shocker]

Walmart did it a few years ago. I'm sure other companies have done it too.

http://consumerist.com/2007/07/walmart-took-secret-life-insurance-policies-out-on-employees-collected-after-their-death.html

[im4wsu]

Insurable interest

I haven't read this thread thoroughly, but in England this kind of betting on other people's mortality is commonplace, but not in the US. In order to purchase a policy on somebody, the owner has to have an "insurable interest" in the insured. I'm not sure how these policies were structured, but the insured would have to sign the application, at the very least. If the university/foundation owned the policy and paid the premium, I don't believe that would satisfy the insurable interest. If the insured owned the policy and paid the premium and named the university/foundation as beneficiary, that would be perfectly okay.

[Kung Wu]

I haven't read this thread thoroughly, but in England this kind of betting on other people's mortality is commonplace, but not in the US. In order to purchase a policy on somebody, the owner has to have an "insurable interest" in the insured. I'm not sure how these policies were structured, but the insured would have to sign the application, at the very least. If the university/foundation owned the policy and paid the premium, I don't believe that would satisfy the insurable interest. If the insured owned the policy and paid the premium and named the university/foundation as beneficiary, that would be perfectly okay.

Yeah "key man insurance" is, in my opinion of course, a really good idea for businesses with multiple partners or employees that are heavily technically responsible for keeping the company's secret sauce brewing.

[im4wsu]

Yeah "key man insurance" is, in my opinion of course, a really good idea for businesses with multiple partners or employees that are heavily technically responsible for keeping the company's secret sauce brewing.

Totally agree, but this is a far cry from key-man without the employee-employer relationship. In the key-man case, the purchaser (employer) loses something if the employee dies (his services); in the OSU case, the purchaser loses only non-guaranteed annual contributions in return for a boatload of cash.

[Kung Wu]

Totally agree, but this is a far cry from key-man without the employee-employer relationship. In the key-man case, the purchaser (employer) loses something if the employee dies (his services); in the OSU case, the purchaser loses only non-guaranteed annual contributions in return for a boatload of cash.

Totally agree.

[BostonWu]

I do find it ironic that the story is being reported on "dead"spin.

Forbes article which says the 27 boosters ranged in age from 65 to 85.

http://www.forbes.com/sites/chrissmith/2012/03/20/osu-cowboys-death-wish-goes-unanswered-lose-33-million/