Zion Williamson has an $8 million loss-of-value insurance policy that kicks in if he falls past No. 16 in the NBA draft, according to elite sports business insider Darren Rovell of the Action Network.
Williamson, who is projected to be the first pick in the NBA draft, suffered what Duke coach Mike Krzyzewski called a mild knee sprain in the opening minute of top-ranked Duke’s 88-72 loss to eighth-ranked North Carolina Wednesday night in Cameron Indoor Stadium. His Nike basketball shoe mal functioned and his foot came through the side of the shoe, triggering the injury.
The Action Network, citing sources, stipulates that Williamson can select $8 million if he is selected past the 16th pick. That loss of value insurance is typically added to disability insurance, which can pay out between $10 million and $15 million if a player suffers a career ending injury.
The top pick in the upcoming draft is expected to make $25.5 million over the first three years of his career. The premium for both loss of value insurance and disability would cost roughly $90,000. Duke paid for the policy.
It seems unlikely that Williamson will fall to No. 16 or below, regardless of what happens to his knee, but his injury has re-triggered questions about whether the 6-7, 285-pound freshman will shut it down for the remainder of the season.
“I would be shocked if he didn’t come back and play,’’ Williamson’s AAU coach Ryan Falker of the Adidas-sponsored Game Elite program, told Zags blog. “No way he shuts it down. He’s too much of a competitor and truly loves the college game and his teammates. He also has way too much respect for Coach K to quit mid-season. Zion would never quit on his teammates.’’
Williamson’s availability is day to day.
Williamson said in a recent interview that his goal was to wind an NCAA championship with Duke and the season would be a failure if he didn’t.
Most basketball analysts think Williamson should not shut it down unless he suffers a major injury.
Williamson’s high-profile injury comes as the same time that the NBA officially made a proposal to the Players’ Association to lower the age a player can enter the league from 19 to 18 by 2022. Critics have suggested the NCAA and the ESPN are is reaping enormous rewards from Williamson’s presence—cheapest ticket to the Carolina-Duke was $2,990. — in the college game, but the college players receive only limited cost of attendance stipends.
It also affects Nike, which must deal with the backlash from the defective shoe until Williamson returns to the lineup. It probably didn’t help with former President Obama, who was courtside, seemingly said, ‘The shoe broke.’’
Nike shares fell one percent Thursday, closing at $83.95, down from $84.84. Nike is the exclusive supplier of uniforms, shoes and apparel under a 12-year contract that was extended in 2015.
