Report- ryu insurance
This is something that’s been talked about quite a bit in the past but the details are a little murky.
Ryu, of course, inked a four-year, $80 million deal with the Blue Jays back in December of 2019. He had an excellent showing in the pandemic-shortened 2020 season, started off well in 2021 but faded as time went along, and then completely fell off early in 2022 and wound up having season-ending elbow surgery in June. There’s a chance that Ryu comes back late in 2023 but the reasonable bet here is that he’s thrown his last pitch for the Blue Jays.
Given Ryu’s injury history (he missed all of 2015 and most of 2016 after undergoing shoulder surgery and was limited to 15 starts in 2018 because of a groin injury), having his contract insured would have been the prudent move for the Blue Jays to make, even if they had to pay a significant premium.
But, unfortunately, this whole situation isn’t as simple as ‘the insurance company is going to give the Blue Jays $20 million to compensate for Ryu so that financial commitment is off the books now!’
I spoke with a source familiar with sports contracts and insurance and they told me that payouts won’t start until a player has been on the Injured List for two months, so the Blue Jays likely won’t be getting insurance funds for the entirety of the $20 million Ryu is owed next season. Meanwhile, Ben Nicholson-Smith mentioned on Sportsnet recently that the claim can’t be filed until the contract is over, so the Blue Jays wouldn’t recoup any money until after the 2023 season.
Also, as far as I know, Ryu’s salary would still be considered in luxury tax calculations, which are based on the average annual value of a contract, and the Blue Jays have indicated in the past that they aren’t going to be going over that threshold.
So, all things considered, don’t expect a $20 million spending spree this winter because of Ryu’s insurance money. This will add flexibility, for sure, but it might be more relevant come trade deadline time next summer rather than during the off-season.