American Specialty Underwriters, a company that began insuring against the payout of such bonuses in 1992, held about a dozen policies with seven teams, including the Bruins, last season. Overall, though, we expect to get a 20 percent return from these policies in the long term. Still, some teams will continue to find insurance appealing because premiums can be a fixed part of a club's budget, while large bonus payments are a significant X factor in a team's finances. The insurance policies offer another benefit as well. Traditionally, when a player approaches a lucrative milestone late in a season, a conflict can arise over whether his team is giving him sufficient ice time to gain the bonus.
Insurance helps create goodwill.
Most will never get an NHL contract. Now if you draft nine guys, you'll sign maybe two or three. The reason, not surprisingly, is money. Because NHL payrolls are skyrocketing, many teams are unable, or unwilling, to invest in most of their draft picks. Under league rules, teams can hold the signing rights to a player for two years, watch him play in college or juniors and then decide if he's worth a contract.