In a move that could shake up college sports, Arkansas basketball has insured its entire roster through a new Lloyd’s of London-backed policy. This approach, driven by former Memphis player Travis Long and his partner Steve Stelmach, is meant to protect donor investments in the era of NIL (Name, Image, and Likeness) deals.
The stakes are high. The 32 Group’s insurance model offers a safety net for both athletes and donors, aiming to keep support and financial stability flowing for college programs.
The Birth of an Innovative Insurance Model
When John Calipari took over Arkansas basketball in spring 2024, he was met with a tough situation. Only two players returned, so the team was already on unstable ground.
Things got worse when reserve walk-on Lawson Blake suffered an Achilles injury just two days into Calipari’s tenure. This raised a pressing question: what if a player with a million-dollar NIL deal gets hurt?
The potential loss could scare off future donor contributions. That pushed Calipari to look for a solution.
The Role of Travis Long and Steve Stelmach
Travis Long, who played for Calipari at Memphis, co-founded the 32 Group with Steve Stelmach to tackle this exact problem. Their New York-based insurance agency, with support from Lloyd’s of London, offers a pretty straightforward policy.
For 3% of an NIL or revenue-share agreement, the 32 Group provides injury protection. So, if a player has a $1 million contract, it costs $30,000 to insure.
If a player gets a season-ending injury before January 15, the funding entity receives a full refund, and the athlete still gets their contracted payment. Injuries between January 15 and February 15 mean a 50% reimbursement.
Protecting Donor Investments
This insurance model separates athlete pay from donor risk. Players get paid whether they’re injured or not, while funders can get their money back and use it elsewhere.
Stelmach summed it up: “I can’t believe every university and every collective doesn’t have this in place.” Honestly, it’s a fair point.
The Financial Landscape of College Sports
Stelmach estimates that power conference schools together hand out over $1 billion in direct revenue sharing. Another $1–2 billion flows through NIL collectives and business partnerships.
Before the 32 Group showed up, none of this money had injury protection. The system is still pretty new—revenue sharing only became allowed in 2024, and NIL collectives popped up in 2021.
Arkansas Sets the Standard
Arkansas has insured its full roster for the current season. The feedback from big donors has been overwhelmingly positive.
Calipari pointed out that major donors got wealthy by protecting their investments, not by taking on unnecessary risk. “People who are rich enough to be a part of this are rich for a reason. They don’t throw their money away. This is a way to protect the donor,” he said.
Addressing Booster Fatigue
Calipari coined the phrase “booster fatigue” to describe the challenge college programs are facing now. The old scholarship model had predictable fundraising cycles with clear targets.
NIL changed all that, turning major boosters into something like payroll departments funding six- and seven-figure athlete contracts. The model depends on ongoing donor renewal, but it doesn’t have the stability of traditional employment or pro sports contracts.
The Future of College Sports Insurance
The 32 Group is already talking with several other programs about similar coverage. Stelmach expects more schools to jump on board as athletic directors and collective operators see the dual benefits: protecting athletes and keeping donors engaged.
“These are legitimate business transactions made by legitimate businesspeople. They don’t walk into their businesses and it’s not insured. Neither should this,” he said. Makes sense, doesn’t it?
Expanding Beyond Basketball
This insurance model could easily spread to all college sports where big NIL or revenue-sharing deals exist. Football, with its nine-figure budgets, is the obvious next step, but the same logic applies to baseball, softball, volleyball, and other sports where individual athletes are getting paid real money.
College athletes don’t have union-negotiated disability provisions or guaranteed contracts like the pros. Insurance provides some much-needed financial continuity for everyone when injuries happen.
A Step Towards Professionalization
The rise of athlete compensation insurance is another sign that college sports are becoming more professional. Programs now manage payroll, negotiate contracts, deal with donors, and protect investments—just like pro franchises.
The 3% premium rate suggests insurers think college athlete injury risk is manageable. Lloyd’s of London backing these policies shows real confidence in the model’s numbers. If you ask me, it’s about time college sports caught up.
Adoption and Sustainability
For programs competing at the highest level, this coverage might just become standard. Athletic directors could soon get grilled by major donors about whether their roster investments have any real protection.
Collectives without insurance? They might have a tough time pulling in seven-figure commitments, especially when rivals are offering some kind of safety net. The bigger question—can NIL and revenue-sharing systems really last if there’s no protection in place?
Calipari’s gut feeling that donor excitement will fade once the novelty wears off isn’t exactly rare. There’s a lot of worry out there about whether college athletics can keep funding flowing over the long haul.
Insurance doesn’t magically fix the complicated debate around athlete compensation. Still, it does knock down at least one big hurdle standing in the way of donor confidence.
As Stelmach put it, *this is just basic business logic coming to a new playing field. The only shock is that it took so long for someone to offer it.*
Want to dig deeper into how this insurance model works? Check out the full article on Youth Sports Business Report.
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