Oklahoma State Gambled on Boosters’ Deaths, Lost $33 Million
T. Boone gave some bad advice. Oklahoma State’s athletics department took out $10 million life insurance polices on 27 elderly boosters in 2007. The scheme was expected to reel in as much as $350 million. The Cowboys paid $33 million in premiums over two years before canceling the policies in 2009, when not one of the old codgers passed from this earth.
OSU tried to get out on a technicality, though a U.S. District Judge ruled the life insurance company could keep the money. This is sort of like that time where the athletics department lost $77 million investing in T. Boone’s hedge fund before the financial crisis.
[Photo via Getty]

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164 Responses to “Oklahoma State Gambled on Boosters’ Deaths, Lost $33 Million”
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March 20th, 2012 at 2:09 PM
Hilarious
March 20th, 2012 at 2:09 PM
stubborn old coots. How dare they live. Don’t they know there’s footbaw players to feed?
March 20th, 2012 at 2:11 PM
Was the AD fired for this?
March 20th, 2012 at 2:11 PM
An athletic department took out a life insurance policy on boosters? I’m not sure what, but something about that whole concept doesn’t seem right.
March 20th, 2012 at 2:12 PM
Now this is a scandal I can sink my teeth into. This thread is destined for gold.
March 20th, 2012 at 2:12 PM
…. what the fuck?
March 20th, 2012 at 2:13 PM
should have just had those old folks take a flight with their athletic teams, problem solved, cash in on all 27.
March 20th, 2012 at 2:13 PM
the hell?
March 20th, 2012 at 2:14 PM
I didn’t know you could do this.
March 20th, 2012 at 2:15 PM
You’ve got a JD. Is this even legal?
March 20th, 2012 at 2:16 PM
This will only get worse. What fucking morons.
should have just had those old folks take a flight with their athletic teams, problem solved, cash in on all 27.
That’s cold.
March 20th, 2012 at 2:16 PM
I didn’t know you could do this.
This is the part I’m stuck on. I can’t imagine that this is illegal in any way, but there’s something about it that seems unseemly.
March 20th, 2012 at 2:17 PM
Was the AD fired for this?
T. Boone runs everything. The AD is merely a sock puppet that once belonged to his dad.
March 20th, 2012 at 2:17 PM
joooookelahoma.
March 20th, 2012 at 2:17 PM
stupid ass okies.
March 20th, 2012 at 2:17 PM
The real question is whether any of those boosters have kicked the bucket since the policy cancellation. Maybe T. Boone’s advice would have proven prescient if only followed for a few more years.
March 20th, 2012 at 2:18 PM
Weird, I thought T. Boone Pickens was the only OK State booster in existence.
March 20th, 2012 at 2:18 PM
not to be that guy… but the last two posts’ subjects seem to have been lifted straight from the competition.
/am that guy
March 20th, 2012 at 2:18 PM
If there ever was a time for a bounty program in sports it should have been on taking out those guys
March 20th, 2012 at 2:18 PM
I’m not sure what, but something about that whole concept doesn’t seem right.
Not well-versed in concepts of modern financial markets, are we? This kind of thing is not exactly an uncommon occurrence. If you actually have access to these sorts of files you can get a good idea of what your employer thinks of you based on whether or not they have a bunch of insurance taken out on you. These were probably all big-time boosters who put big money into the program(s), the idea is that if they die then that money is going to dry up. I’d like to know if the old timers put in more money than these insurance policies cost over the timeframe being reported.
March 20th, 2012 at 2:18 PM
No idea. I mean did they know the insurance policies were being taken out on them? This is just creepy and weird.
If I paid 33 million in insurance premiums I would sure as shit be having those people murdered to cash in.
March 20th, 2012 at 2:18 PM
In the deadspin article on it I read a few hours ago, it seemed like they were branded as gifts from the alumni. So the athletic dept basically needed permission to pay the premiums on the policies. If they did it without them knowing, it’d be different.
March 20th, 2012 at 2:19 PM
This is the part I’m stuck on. I can’t imagine that this is illegal in any way, but there’s something about it that seems unseemly.
College endowments have deals where alums can take out life-insurance policies and have the endowment be the recipient. The weird thing here is that the athletic department paid for it. If I’m a booster, I’d be really pissed that T. Boone gambled my donation away.
March 20th, 2012 at 2:19 PM
I work for an insurance company, and I’m pretty sure orientation didn’t cover anything like this. Even if it isn’t somehow illegal, the NCAA must have a rule against this type of thing.
March 20th, 2012 at 2:20 PM
Shots fired.
March 20th, 2012 at 2:21 PM
this is the unternet, Duffy. be first or don’t be at all.
March 20th, 2012 at 2:21 PM
An athletic department took out a life insurance policy on boosters? I’m not sure what, but something about that whole concept doesn’t seem right.
There are all sorts of orgs doing this. My frat does it. It does seem unseemly.
But, we’re all gonna die. Might as well leave something for someone, not counting family and folk you actually care about, that is.
March 20th, 2012 at 2:21 PM
I’m surprised that the cancelled the policy, instead of all the boosters dying of ‘mysterious’ circumstances around the same time.
March 20th, 2012 at 2:21 PM
and the internet.
March 20th, 2012 at 2:22 PM
You have to give approval for a life insurance policy to be taken out on you.
I could take one out on Lindsay Lohan, as long as she signed it.
March 20th, 2012 at 2:22 PM
I’m so going to hell for laughing out loud at this.
March 20th, 2012 at 2:22 PM
It’s sort of not like it at all. Pickens donated $165 million himself, the school kicked in $37 million. A rough year pushed that down to $125 million.
Be more sensational.
March 20th, 2012 at 2:22 PM
Not well-versed in concepts of modern financial markets, are we?
I have a BA in Political Science and an Masters in History. Soooo no.
March 20th, 2012 at 2:23 PM
You have to give approval for a life insurance policy to be taken out on you.
you have to name the beneficiary too, right? so these people would list OK. State as the beneficiary? Boosters are weird. Some are pathetic.
March 20th, 2012 at 2:23 PM
Pretty sure this is standard practice at Wal-mart too for those old-ass greeters.
March 20th, 2012 at 2:23 PM
rodmansrage ran away with this one folks.
March 20th, 2012 at 2:23 PM
SROD – U of Memphis called me last night to solicit a lifetime membership to the alumin association. I said, “sure. how much?” she said, “$750.” I said, “neverind, call me in a few years.”
March 20th, 2012 at 2:23 PM
/takes out insurance policy on Keith Richards
//wonders what this “undead super premium charge” is
March 20th, 2012 at 2:24 PM
but the last two posts’ subjects seem to have been lifted straight from the competition
I can’t make up my mind on what joke to build from this. “US Weekly wrote about Oklahoma State boosters?” is one route I’m considering. Do you really think I would blow my options on a half-assed joke that might not get any laughs, though? I’ve worked too hard to build up my commenter credibility for a thing like that.
March 20th, 2012 at 2:24 PM
Dont worry, I was thinking the same thing
March 20th, 2012 at 2:24 PM
it’s legal and it’s a fairly common practice, according to my boss…what’s not common is cancelling the policies.
March 20th, 2012 at 2:24 PM
I know he’s filthy rich and I could just wiki or Google this but you people are more entertaining. How did T. Boone Pickens get so filthy rich in the first place?
March 20th, 2012 at 2:25 PM
I can’t make up my mind on what joke to build from this. “US Weekly wrote about Oklahoma State boosters?” is one route I’m considering. Do you really think I would blow my options on a half-assed joke that might not get any laughs, though? I’ve worked too hard to build up my commenter credibility for a thing like that.
nicely done.
March 20th, 2012 at 2:25 PM
Yes on all counts.
March 20th, 2012 at 2:26 PM
energy something or other.
March 20th, 2012 at 2:26 PM
if you buy her a celebratory eightball, that sounds like a pretty solid investment.
“lifetime gifts”
I think the reasoning is so they can give large amounts of money to the school, but not have to cut Sally Q Richbitch’s inheritance.
March 20th, 2012 at 2:26 PM
How did T. Boone Pickens get so filthy rich in the first place?
he benefited along with craig james in the great hooker rush of 1982.
March 20th, 2012 at 2:26 PM
He invented Boone’s Farm.
March 20th, 2012 at 2:27 PM
He’s an oil man, SC.
March 20th, 2012 at 2:27 PM
it’s legal and it’s a fairly common practice, according to my boss…what’s not common is cancelling the policies.
The assassins must have gotten cold feet.
March 20th, 2012 at 2:27 PM
This may be the ultimate WTF.
March 20th, 2012 at 2:27 PM
just kidding.
/but seriously, I would like some fries with this
March 20th, 2012 at 2:27 PM
miz, has that price gone down in recent years? I thought a lifetime membership was more than that – around a grand or more.
Admittedly, I thought about doing that at one time. Still may, once I finally get out of all the debt my divorce caused.
/gtg
March 20th, 2012 at 2:27 PM
Black gold.
March 20th, 2012 at 2:27 PM
Cold call them and ask why they are still alive. It’s standard
journalismtabloid/blog practiceMarch 20th, 2012 at 2:28 PM
I think it is, but you may need their approval/signature.
When I started my first traveling consulting job, there was a guy on the project that, if we were ever at the airport together, he’d ask if I would allow him to take a fight insurance policy on me. Just a bit unsettling.
March 20th, 2012 at 2:28 PM
TBL Funbag will likely be the next post.
March 20th, 2012 at 2:28 PM
I could take one out on Lindsay Lohan, as long as she signed it.
/takes out insurance policy on Keith Richards
//wonders what this “undead super premium charge” is
Laughing out loud and shaking my head.
March 20th, 2012 at 2:28 PM
I’m not an advocate for paying players or whatever, but it’s crazy to me that the NCAA is ok with this but not with a Vanderbilt fan buying Festus Ezeli lunch. It’s so weird to me how boosters work.
March 20th, 2012 at 2:29 PM
Dammit. I was hoping this candidate had a chance for this year’s bid.
March 20th, 2012 at 2:30 PM
Depending on their age, they should have worked out a perm life rather than term…higher premiums, but at least they get back the principal+investments if these assholes choose not to die.
March 20th, 2012 at 2:30 PM
don’t know. this is the first time they’ve asked me to join lifetime. it’s usually just an annual thing.
March 20th, 2012 at 2:31 PM
A regular Jed Clampett, eh? Thanks folks.
+ several dick jokes
March 20th, 2012 at 2:31 PM
CJ if you’re still around I wrote up a review on my experience so far with the Kindle Fire in the last thread.
March 20th, 2012 at 2:31 PM
this is fucking awesome!
March 20th, 2012 at 2:31 PM
Gonna need something stronger. She’s on her second eightball before I wake up in the morning.
March 20th, 2012 at 2:32 PM
It doesn’t make sense to cancel the policies on all of them does it? Unless the boosters wanted the policies canceled, cause they are basically paying for it, right? This is so weird. Or maybe it’s not, it just seems weird.
March 20th, 2012 at 2:32 PM
When I started my first traveling consulting job, there was a guy on the project that, if we were ever at the airport together, he’d ask if I would allow him to take a fight insurance policy on me.
do they still sell these in airports? where would you go? Is there a state farm office at hartsfield or something?
March 20th, 2012 at 2:33 PM
I have a BA in Political Science and an Masters in History. Soooo no would you like fries with that?
just kidding.
/but seriously, I would like some fries with this
Ha, you smartass engineer.
March 20th, 2012 at 2:33 PM
7.9 earthquake in Mexico.
March 20th, 2012 at 2:34 PM
do they still sell these in airports? where would you go? Is there a state farm office at hartsfield or something?
Vending machines, next to the condoms and generic Viagra.
March 20th, 2012 at 2:34 PM
karmatic irony is, i made that post, walked into the bathroom, and pissed a few drops on my shoes. to no one in particular i go “aight, it was a bit off color, and for that, i apologize.”
March 20th, 2012 at 2:34 PM
Oh wow. I just bought my mom one for her birthday last weekend. HA. You are welcome old lady!
March 20th, 2012 at 2:35 PM
Is flight insurance kind of like the insurance you can buy when you book a vacation? It includes a maim and dismemberment clause!
March 20th, 2012 at 2:35 PM
7.9 earthquake in Mexico.
I only get out of bed for 8 pointers…
–Ballz
March 20th, 2012 at 2:35 PM
All the homes are in shambles!
March 20th, 2012 at 2:36 PM
Hope this doesn’t affect my dealers’ suppliers’ suppliers’ suppliers’ supplier.
March 20th, 2012 at 2:36 PM
7.9 earthquake in Mexico.
where? out in bumblefuck, or in a populated area?
March 20th, 2012 at 2:36 PM
Bummer. For the price I think I am still going to give it a shot though. I’ll let you know if I have the same problems with battery life, etc.
March 20th, 2012 at 2:36 PM
I’m older than most folks here … you could get it from the service desks. This happened to be the Daytona Beach International Airport, so if I recall, there was a little old man there at-the-ready all the time.
March 20th, 2012 at 2:37 PM
Downgraded to 7.6
March 20th, 2012 at 2:37 PM
7.9 earthquake in Mexico.
I see Rosie O’Donnell went down to Mexico to drown her show being cancelled sorrows.
March 20th, 2012 at 2:38 PM
Poor side or tourist side?
March 20th, 2012 at 2:38 PM
SportsCenter just dropped, “the end of an era” when referring to Tim Tebow. Is 11 games really an era?
March 20th, 2012 at 2:38 PM
I got mine at Christmas so I’m hoping I just got a bad model and they’ve worked out the kinks since then.
March 20th, 2012 at 2:38 PM
Hope this doesn’t affect my dealers’ suppliers’ suppliers’ suppliers’ supplier.
I laughed.
March 20th, 2012 at 2:39 PM
Rooted Nook > Kindle Fire
March 20th, 2012 at 2:39 PM
SportsCenter just dropped, “the end of an era” when referring to Tim Tebow. Is 11 games really an era?
This is sort of like asking “Is ‘two pumps’ the same as ‘having sex’?”
March 20th, 2012 at 2:39 PM
CJ’s favorite beat reporter and tiny person, Adam Schefter with this nugget:
OMGPLEASEYESTHISWOULDBETHEBESTTHINGEVER
March 20th, 2012 at 2:40 PM
SportsCenter just dropped, “the end of an era” when referring to Tim Tebow.
Wait? Who took his V-Card?
March 20th, 2012 at 2:40 PM
Was it sarcasm?
March 20th, 2012 at 2:42 PM
That depends. Is Madonna’s “this used to be my playground” playing in the background as he leaves the facility?
March 20th, 2012 at 2:42 PM
Rooted Nook > Kindle Fire
I’ve heard that as well.
March 20th, 2012 at 2:43 PM
Also a quake in Indonesia…the rapture has begun.
March 20th, 2012 at 2:43 PM
Rooted Nook > Kindle Fire
Agree with this.
March 20th, 2012 at 2:45 PM
FWIW, I got my gf one at christmas too and she hasn’t had any issues like you spoke of at all. sounds like you maybe just got a bad one. Have you tried contacting amazon on it?
March 20th, 2012 at 2:45 PM
Yes, because there was never a Tebow-era at Denver. There was a “holy shit we have this idiot QB playing for us before we landed Pey Pey era.”
March 20th, 2012 at 2:46 PM
Truly amazing. Whenever you think you’ve discovered the world’s slimiest asshole, another one sprints around the corner with great vigor.
March 20th, 2012 at 2:47 PM
I’ve heard rumors that indicate MajorLeagueJerk took out a policy valued at upwards of $900 on me. Biggest payout they could have, unless Fetch eats it first.
/stares out over river
March 20th, 2012 at 2:47 PM
Except I love really love Amazon Prime. I should have just bought the reader version of the Kindle instead of the Fire since I’m really only using it to read my mommy porn books.
March 20th, 2012 at 2:48 PM
TBL: “Hey Mexican, is your refridgerator running?
Mexican: “No, an earthquake lifted it up and it landed on my son, killing him instantly.”
TBL: “Better go catch it!”
/Cold Call Mursday
March 20th, 2012 at 2:48 PM
Yes. They basically told me the only option is for me to send it back and they would replace it (as long as I have a laundry list of issues deemed worthy of a replacement).
March 20th, 2012 at 2:49 PM
Exactly. In the two years spanning the initial donation and OSU’s deposit the fund increased to $407 million. Let’s present the whole truth, not the convenient one.
March 20th, 2012 at 2:50 PM
Can I get a recommended list for my lovely wife?
March 20th, 2012 at 2:50 PM
Ick.
March 20th, 2012 at 2:50 PM
Let’s present the whole truth, not the convenient one.
You must be new here.
/fast forward to 1:20 of this youtube video so you can see bob knight being an ass without context!
March 20th, 2012 at 2:51 PM
TBL: “Hey Mexican, is your refridgerator running?
Mexican: “No, an earthquake lifted it up and it landed on my son, killing him instantly.”
TBL: “Better go catch it!”
/Cold Call Mursday
I feel so bad for laughing at this, but shit it was funny.
March 20th, 2012 at 2:51 PM
/dying
March 20th, 2012 at 2:51 PM
What did the mexican say when the apartment complex fell on top of him in Acapulco?
March 20th, 2012 at 2:51 PM
Also a quake in Indonesia…the rapture has begun.I laughed.
/hides under desk
March 20th, 2012 at 2:52 PM
@JayV
who you liking in the sweet 16?
March 20th, 2012 at 2:53 PM
Never borrow a persons cell phone, tablet or laptop.
March 20th, 2012 at 2:53 PM
/dying
Are you in Mexico scripty?
March 20th, 2012 at 2:54 PM
Rusty that’s great.
March 20th, 2012 at 2:54 PM
Additional details ….
Un fuerte terremoto de magnitud 7,6 afectó a México el martes (20), según el Servicio Geológico de EE.UU.
March 20th, 2012 at 2:54 PM
That Wisconsin fella that TBL and staff reported on a few months ago got absolutely CRUSHED by Deadspin. This is disgusting.
March 20th, 2012 at 2:56 PM
I should have added…
/cashed nicely on Vandy v. Harvard
March 20th, 2012 at 2:56 PM
it seems like you have more than enough reasons to do it, is there a reason why you aren’t?
March 20th, 2012 at 2:57 PM
Not at all, just holding out hope that TBL sees all of the commenters who are complaining about the content as of late and a) changes his strategy, b) decides to care a bit more or c)both.
March 20th, 2012 at 2:57 PM
It’s the new book that all these moms in new york are raving about right now. Has tons of sex in it. Fifty Shades of Grey is the first book.
March 20th, 2012 at 2:57 PM
/dying
March 20th, 2012 at 2:57 PM
ATL_Badger?
March 20th, 2012 at 2:58 PM
7.6 is a big one, man that’s amazing it’s not worse.
March 20th, 2012 at 3:00 PM
@SG, I responded in the previous post, but outside of the delays (which are annoying but you get what you pay for), I haven’t had any of the issues. It sounds like you just got a lemon.
May the mommy porn that put a bug in your Kindle.
March 20th, 2012 at 3:01 PM
So SG … if Fifty Shades of Grey were to “just happen” to appear on my wife’s list of Kindle books as a surprise from me, do you think it might be considered creepy, weird, invasive … other?
March 20th, 2012 at 3:01 PM
This is the shit TBL needs to get in on. Good for Deadspin using FOI.
March 20th, 2012 at 3:02 PM
I’m already calling BS on that story. Do you know how long it takes a drunk person to undo a belt and stick their hands down someone’s pants? If you didn’t like it you would stop it the second the person reached for your belt.
March 20th, 2012 at 3:02 PM
It’s not the worst move. Put 3 books on there or something. Mix it up.
cook book
cleaning book
and sex book
March 20th, 2012 at 3:04 PM
The wife trifecta!
March 20th, 2012 at 3:05 PM
cook book
cleaning book
and sex book
I swear I’m laughing uncontrollably – I’m going to have a mob of people in here in a minute. Simply … awesome.
March 20th, 2012 at 3:05 PM
yea, but a drunk person with a goatee like that? anything’s on the table*.
*the broken table
March 20th, 2012 at 3:06 PM
JM: “Hey Mr. Chadima, my name’s Jason McIntyre, I’m from The Big Lead.”
JC: “How did you get this number?”
JM: “Well I’ve been in the media for a few years…”
JC: “How did you get this number?”
JM: “Just a source. Why’d you grab that kid’s cock?”
JC: {click}
March 20th, 2012 at 3:06 PM
This is the shit TBL needs to get in on. Good for Deadspin using FOI.
I’ve passed along a link or two to those in charge regarding another university that’s in the sweet 16 completely sweeping rape allegations under the rug, alas, we get posts transcribing bobby knights refusal to comment.
March 20th, 2012 at 3:06 PM
I can’t answer that question because I don’t know what your relationship is with your wife. If was married and my husband put that book on my kindle for me I would think that was super weird mostly because I’d wonder how the F he even knew about a book like this.
St. Bear – the issues happened long before I downloaded my mommy porn so you’re probably right about me getting a lemon.
March 20th, 2012 at 3:07 PM
I love the “How’d you get this number?” response to every question
March 20th, 2012 at 3:08 PM
What’s this now?
March 20th, 2012 at 3:10 PM
“En-route to Chadima’s house, Chadima made statements to JD2 speculating on the size of JD2′s penis and that Chadima thought that JD2 had “a nice ass.” JD2 stated that at this time, he went on “high alert.”
is it bad that i laughed at this?
March 20th, 2012 at 3:10 PM
CJ – Vox, read that?
March 20th, 2012 at 3:11 PM
I have to say…I fucking love them. Perhaps my favorite meme on this site. Just fantastic.
March 20th, 2012 at 3:11 PM
Here you go CJ… kind of a long read.
March 20th, 2012 at 3:14 PM
Has this site ever really broken any news or done any good investigative work? (other than some media member changing jobs, etc.) I haven’t been here that long.
March 20th, 2012 at 3:15 PM
well, they uncovered the sexy ambulance, for one.
March 20th, 2012 at 3:15 PM
What the fuck, J-Mac? You usually do posts on these kinds of things.
March 20th, 2012 at 3:16 PM
“How’d you get this number?”
I read this like Mel Gibson “Give me back my son” from Ransom.
March 20th, 2012 at 3:16 PM
Steve McNair’s real killer.
March 20th, 2012 at 3:16 PM
The Michael Vick strip club thing.
March 20th, 2012 at 3:17 PM
I never got the impression that TBL wanted to delve into investigative sports journalism.
March 20th, 2012 at 3:18 PM
Has this site ever really broken any news or done any good investigative work?
As it relates to the stereotype regarding black athletes and penis size, I would say yes.
March 20th, 2012 at 3:18 PM
Has this site ever really broken any news or done any good investigative work?
Black athletes have large penises.
Oh, you said good investigative work.
March 20th, 2012 at 3:19 PM
Bernard Berrian snitching.
March 20th, 2012 at 3:19 PM
It’s expensive and often fruitless, so I could easily see that. There’s a reason so many newspapers have all but dropped it as well. That shit is too risky in terms of generating news.
March 20th, 2012 at 3:19 PM
No. 144 for the win, by the way.
March 20th, 2012 at 3:21 PM
Some people might call that good investigative work.
/Coop’d
March 20th, 2012 at 3:22 PM
i lolled two time.
March 20th, 2012 at 3:23 PM
Some people might call that good investigative work.
/Coop’d
Well done. Now say ‘goodnight’, Gracie.
March 20th, 2012 at 3:31 PM
I need the recap of the sexy ambulance, please. Missed that one.
March 20th, 2012 at 3:33 PM
Notre Dame’s in the Sweet 16?
/ Awaits fire and brimstone from Senator J
March 20th, 2012 at 3:35 PM
I need the recap of the sexy ambulance, please. Missed that one.
That genius thread was lost during one of the times that the archives were wiped.
/pours one out for the archives.
March 20th, 2012 at 3:36 PM
he’ll have to jump in the declan sullivan memorial camera tower to rain that down on you, brah. might take awhile.
March 20th, 2012 at 3:36 PM
I’m starting to think Lohan as that Keith Richards-cockroach thing working in her favor.
March 20th, 2012 at 3:37 PM
I’ll just sit here in my douchecanoe and wait, then.
March 20th, 2012 at 3:38 PM
he’ll have to jump in the declan sullivan memorial camera tower to rain that down on you, brah. might take awhile.
Oh man. You’re the best.
March 20th, 2012 at 3:40 PM
He helped Cheney and Halliburton line up a discounted supply of succulent babies for roasting.
March 20th, 2012 at 3:45 PM
And Heisenberg drops the other shoe …