Butt, who tore his ACL in the Orange Bowl against Florida State, has a $2 million loss-of-value policy that he started collecting insurance on when he wasn’t picked in the top half of the third round Friday night.
He first started collecting, at $10,000 a pick, in the middle of the third round, a source with knowledge of the policy with ISI told ESPN. By the end of Friday night’s third round, the policy had covered about $150,000.
The 2016 Mackey Award winner for the best tight end in the nation, Butt suffered a second torn ACL in the Orange Bowl. The subsequent surgery prohibited him from showing teams what he could do.
Butt took out a $2 million total disability policy with a $2 million loss-of-value policy attached before the start of the season. The loss-of-value rider cost roughly $25,000, a source said.
Through the first three rounds, six tight ends have been drafted: Alabama‘s O.J. Howard (No. 19), Ole Miss‘ Evan Engram (23), Miami‘s David Njoku (29), South Alabama‘s Gerald Everett (44), Ashland‘s Adam Shaheen (45) and Florida International‘s Jonnu Smith (100).
Loss-of-value policies have gained popularity over the past five years. The players who have most famously collected from their draft stock falling have been Oregon‘s Ifo Ekpre-Olomu, who made $3 million in insurance after tearing his ACL and dropping to the seventh round in 2015, and Notre Dame‘s Jaylon Smith, who collected $850,000 from his fall to the second round after teams passed on him following ACL and MCL tears. Both policies were also with ISI.
The first pick of the fourth round will get a guarantee of about $650,000.