How A 750 000 Insurance Policy Made This Pitcher An Extra 66 Million

You see, Scherzer had taken out an insurance policy on himself for $750,000. The policy allowed him to make a cool $40 million if he happened to get hurt and didn’t receive an offer equal to Detroit’s $144 million. Of course, Scherzer didn’t get hurt, but he claimed the insurance policy put his mind at ease. He didn’t have to worry about earning a big salary–even if he suffered an injury, he was set for life. And now, thanks to his new seven-year, $210 million contract with the Washington Nationals (added on to the $29.5 million he’s earned in his career thus far), Scherzer is really set for life. His unique deal includes a $50 million signing bonus, and deferrals that will pay him $105 million from 2022 to 2028, or $15 million per year after the contract.   According to the players’ union, the deferrals actually lower the present-day value of Scherzer’s contract to $191.4 million. But don’t feel too bad for him–he’ll avoid paying state taxes on the signing bonus and deferrals, because a signing bonus is only taxable in the state in which the player resides, and non-residents don’t pay income tax in Washington, D.C. Since Scherzer doesn’t live in the nation’s capital, that’s a nice little chunk of change he’ll (eventually) take home, tax-free. He could even move to Florida to save additional money, thanks to the tax laws there. Though something tells us Scherzer is going to be just fine with his situation now.