The $150 Million Physical

The physical exams administered to Carlos Correa by the SF Giants and NY Mets have cost him $150 million. He now has a six-year deal offered by the Minnesota Twins PENDING A PHYSICAL.  Insurance, or more accurately, the lack of insurance available is driving the market down for this very talented shortstop.

Insuring Baseball’s Risky Contracts

Baseball’s free agents are signing guaranteed contracts for hundreds of millions of dollars and the teams that sign them are insuring these deals much like any other big business hedges their positions. Did the Giants pull their offer to Carlos Correa because their insurer wouldn’t cover the contract over concerns about a previous leg injury? If so, the Mets may pull their offer and he’ll lose out on two $300+ million deals in a span of a week. Insurance underwriters pull a lot of strings behind the scenes in baseball and Robert is fascinated!