Another cost can be added to Real Madrid’s big-money signing of Gareth Bale - that of the insurance policy that the club took out on the Welshman, as it does on all of its signings.
One of the first things that Real Madrid does with its stars is to take out an insurance policy which covers the financial cost of bringing the player to the club. In this case, the policy would be for about €91m.
The policy basically covers two scenarios: the death of the player or his retirement from the game through injury. Should one of these things happen, Real Madrid would receive the money invested in signing the Welsh international.
However, this type of cover forces Real Madrid to pay an annual sum close to one million Euros to the large group of insurers which underwrote this deal. The cost equates to approximately 1% of the total cost of the signing. These big-money operations are never signed with one insurer, but are closed with a large market, in particular the English market, which specialises in this type of operation.
The one thing that these policies never cover are injuries like the chronic disc protrusion that the Welshman is currently suffering from. Insurers will not cover an injury that occurred before the signing of the policy.
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