Football Oklahoma State "fundraiser"

Pitt Gorilla · 03-21-2012, 10:14 AM

http://deadspin.com/5894864/oklahoma...mastatecowboys

Oklahoma State Gambled Millions That Its Boosters Would Die, And Lost
For billionaire businessman and Oklahoma State sugar daddy T. Boone Pickens, only two things are certain: wind and death. Well, the wind farm didn't work, and neither did Pickens's genius fundraiser idea to take out life insurance policies on some of OSU's richest and most elderly donors.

Back in 2007, on the advice of Pickens, the Cowboys athletic department purchased policies for 27 of their very biggest fans. Most were donors and season ticket holders, and all were over the age of 65. Upon an insured donor's death, Lincoln Financial would pay out $10 million to the sole beneficiary, the OSU athletic department. It was called the "Gift of a Lifetime" program, and it was a wager, like all life insurance, but presumably the actuarial tables were in the university's favor.

Then, no one died.

For two years, no one died, and OSU was on the hook for the annual premiums, to the tune of $33 million. So in 2009 the school canceled the program, accepting that betting on and hoping for the deaths of its donors was "morally bankrupt" and a financial failure.

So OSU sued Lincoln Financial, trying to recover their premiums. They claimed that Lincoln misrepresented the costs of the plan, and were negligent in delivering the physical policy contract. Lincoln countersued for breach of contract. Last week, a federal judge in Dallas dismissed both suits, leaving Oklahoma State on the hook for that $33 mil, and forcing them to pay court costs. Death waits for no fan.

Ebolapox · 03-21-2012, 10:16 AM

**gblowfish** · 03-21-2012, 10:21 AM

Hey, Pistol Pete has a gun.
Tell him to do the right thing!

**bevischief** · 03-21-2012, 10:22 AM

Wow, that is all I say.

**Rain Man** · 03-21-2012, 10:44 AM

Quote:

Originally Posted by bevischief

Wow, that is all I say.

I was just about to say the same thing.

These donors knew about it, right? I hope they weren't doing it behind their backs.

**Dartgod** · 03-21-2012, 10:48 AM

Quote:

Originally Posted by Rain Man

I was just about to say the same thing.

These donors knew about it, right? I hope they weren't doing it behind their backs.

They did. And although the policies themselves were not sleazy, the coupons they sent out weekly to the donors for free cigarettes, booze and McDonald's hamburgers might have been over the top.

**J Diddy** · 03-21-2012, 10:52 AM

Quote:

Originally Posted by Dartgod

They did. And although the policies themselves were not sleazy, the coupons they sent out weekly to the donors for free cigarettes, booze and McDonald's hamburgers might have been over the top.

You're forgetting about the occasional ticket for Wendy's Whore Palace, where rubbers are for losers and VD is a right of passage.

Pasta Little Brioni · 03-21-2012, 10:24 AM

Does dis git taken from they endowments?

Stewie · 03-21-2012, 11:21 AM

Not only did no one die, they would have needed 3 or 4 people to die just to cover the premiums.

03-21-2012, 10:14 AM	Topic Starter
Pitt Gorilla Banned! Join Date: Sep 2000 Location: NOT Columbia, MO 65201 Casino cash: $2840194	Oklahoma State "fundraiser" http://deadspin.com/5894864/oklahoma...mastatecowboys Oklahoma State Gambled Millions That Its Boosters Would Die, And Lost For billionaire businessman and Oklahoma State sugar daddy T. Boone Pickens, only two things are certain: wind and death. Well, the wind farm didn't work, and neither did Pickens's genius fundraiser idea to take out life insurance policies on some of OSU's richest and most elderly donors. Back in 2007, on the advice of Pickens, the Cowboys athletic department purchased policies for 27 of their very biggest fans. Most were donors and season ticket holders, and all were over the age of 65. Upon an insured donor's death, Lincoln Financial would pay out $10 million to the sole beneficiary, the OSU athletic department. It was called the "Gift of a Lifetime" program, and it was a wager, like all life insurance, but presumably the actuarial tables were in the university's favor. Then, no one died. For two years, no one died, and OSU was on the hook for the annual premiums, to the tune of $33 million. So in 2009 the school canceled the program, accepting that betting on and hoping for the deaths of its donors was "morally bankrupt" and a financial failure. So OSU sued Lincoln Financial, trying to recover their premiums. They claimed that Lincoln misrepresented the costs of the plan, and were negligent in delivering the physical policy contract. Lincoln countersued for breach of contract. Last week, a federal judge in Dallas dismissed both suits, leaving Oklahoma State on the hook for that $33 mil, and forcing them to pay court costs. Death waits for no fan.
Posts: 46,105

03-21-2012, 10:16 AM	#2
Ebolapox remember, remember Join Date: Jul 2002 Location: como Casino cash: $1979903
Posts: 26,432

03-21-2012, 10:21 AM	#3
gblowfish Be Kind To Your Pets Join Date: Jun 2002 Location: Glorious Independence, MO Casino cash: $17656178 VARSITY	Hey, Pistol Pete has a gun. Tell him to do the right thing!
Posts: 40,839

03-21-2012, 10:22 AM	#4
bevischief .... Join Date: Apr 2009 Location: Somewhere Kansas Casino cash: $8659352 VARSITY	Wow, that is all I say.
Posts: 27,731

03-21-2012, 10:24 AM	#8
Pasta Little Brioni Consuming CP souls Join Date: Oct 2005 Location: U.S.A. Casino cash: $3868880	Does dis git taken from they endowments?
Posts: 68,686

03-21-2012, 11:21 AM	#9
Stewie MVP Join Date: Oct 2006 Location: West of the Equator Casino cash: $1799901	Not only did no one die, they would have needed 3 or 4 people to die just to cover the premiums.
Posts: 13,620