Another Light Bulb Goes Off!
It just finally really sank in that Gene Upshaw’s widow was apparently paid a $14 million lump sum directly out of the NFLPA’s bank account when he passed on to a new life (!). As a businessman, I started wondering why that money was paid directly out of the NFLPA’s coffers and not by an insurance policy that they should have had in place for a key employee like most normal businesses usually have? With any of the businesses I’ve started over the years, my investors typically sleep better knowing that there’s an insurance policy on my life to allow the Company to replace me as CEO in case something happens to me. And I also typically negotiate a separate policy that will provide for my family as part of the package. This happens in businesses across the country every day, regardless of whether they’re privately held or public companies. This is common business practice and I doubt if even Jack Welch, former CEO of GE, would argue with that.
In other words, even if a $14 million policy cost as much as $250,000 a year (which it wouldn’t), it would still have made prudent business sense rather than self-insuring such a large payout. At $250,000 a year, it still would have taken 56 years (!) to pay out $14 million in annual premiums so it would have been a no-brainer decision. You would think that with brilliant business advisors such as Richard Berthelsen and Mary Moran in the executive offices, someone would have stepped up and said, “Gee, we need to put an insurance policy on the Executive Director in case something happens to him.” Or “Gee – Gene wants a $14 million payout to his widow when he dies. Let’s get an insurance policy now!” So why didn’t that brilliant Human Resources Director Mary Moran – paid nearly $250,000 a year for her “smarts” – think of it instead of spending her time sneaking around the NFLPA offices pretending to be an important undercover snitch? And how likely is it that the master of legal obfuscation, Richard Berthelsen, didn’t have a hand in crafting the legal contract that handed $14 million to Gene Upshaw’s widow in one lump sum rather than having it covered by a simple insurance policy (that they likely couldn’t get)? As in all conspiracies, it always comes down to, “What did they know and when did they know it?”
We posted the 2008 LM-2 a while back (click HERE and HERE to read those posts) and discovered that the NFLPA had liability insurance that covered the $5 million+ cost of litigation in the Players Inc. trial. So most of Jeffrey Kessler’s legal fees were paid out of an insurance policy that was put in place just for that purpose. That’s why you have insurance.
This is all conjecture at this stage but a $14 million payout is simply that – a WHOLE lot of money. One thing that DOES come to mind is the possibility that Gene Upshaw either already KNEW he was ill (which would have automatically made him uninsurable) and didn’t disclose it to anyone outside of his inner circle. Which would also mean that several people would have been involved in covering up this deception to defraud the NFLPA membership out of $14 million. Or – worse yet – if the NFLPA basically self-insured Gene Upshaw without full and honest disclosure, would that make the payout fraudulent and reversible? And who should be held accountable? If it had been underwritten by any insurance company instead, I think we’d certainly see them conducting a very serious investigation before they paid Mrs. Upshaw one dime. And even though the retired players still have no vote in their own Union, ALL players should be demanding an open and transparent disclosure and review of ANY agreement to pay out $14 million of YOUR money. With Executive Director DeMaurice Smith publicly instructing active players to start pinching pennies to prepare for a potential lockout next year, was paying out $14 million in cash a good example to set at a time like this?
If a bank was robbed in broad daylight for $1 million, it would make headlines across the world and the FBI would be called in immediately! Yet, in this instance, $14 million was taken right out of YOUR Union’s bank account in plain view and no one has asked any questions! I think everyone deserves to have a look at that agreement as well as all the information related to how and when it was drafted. Was the agreement reviewed and approved by a Board or panel or Executive Committee and who was responsible for drafting it and why?
So something smells rotten in the State of Denmark once again. The NFLPA has to pay the retired players their class action money in two payments over two years and you can’t pay a little disability pension to guys like Johnny Unitas. But you can manage to pay Upshaw’s widow a quick $14 million lump sum widow’s benefit? Hard questions to think about…
We’ve posted two polls below that take simple Yes-and-No Votes. Make your selection (all votes are anonymous).
Chuck Detwiler
September 24th, 2009 at 7:47 pm #
Dave:
These are guesses as to when it would have been taken out on Gene, but I am looking at a level term policy for $14,000,000 written on a 60 yr. old male N/S that would be $79,325 per year. I hope that may help you get to them immediately because this whole thing is beyond anything professional. We’ve been treated like a piece of machinery over the years – God Bless you guys for attempting to make a difference.
Sincerely,
Chuck Detwiler
1970 – 1973
San Diego Chargers, St. Louis Cardinals
Reggie Rucker
September 25th, 2009 at 4:38 am #
Don’t let up for a moment, don’t give them an inch, don’t give them a moment to catch their breath, doggedly and determinedly, kick their natural ….!
Reggie Rucker
Cowboys, Patriots, Giants, Browns
1970 – 1981
Tom Fritz
September 25th, 2009 at 4:57 pm #
Why in America do we let only the rich get richer? It’s not socialism; it is just fairness that we don’t have in America.
Tom Fritz
Kathy Smith
October 3rd, 2009 at 1:22 pm #
Rest assured, the widow will never speak of any NFLPA business she may have overheard or been involved in. She has 14 million – $14,000,000.00 – reasons not to!
Kathy Smith