Oklahoma State UniversityA major fumble on the life insurance gridiron has cost the Oklahoma State Cowboys $33 million. As Forbes reports, the OSU athletic department's attempt to bet on the deaths of 27 geriatric boosters with $10 million life insurance policies backfired when not one died.

Talk about a Hail Mary gone wrong.

Obviously, the way the scenario played out was less than a blessing for OSU. The "Gift of a Lifetime" fundraiser plan was allegedly the brain-child of OSU alum and tycoon T. Boone Pickens. By cashing in on the life insurance policies following the death of the 65- to 85-year-olds, OSU expected to rake in as much as $350 million.

Instead, the athletics department was forced to resort to a legal maneuver in an attempt to recover some of the $33 million it paid in premiums on the policies. But Forbes reports that a U.S. district judge sided with the life insurance company, this week -- noting that the premiums paid on the policies were made legally.

The OSU athletic department, which netted $14.4 million last year according to Forbes, relies on its football profits to fund other, non-revenue-generating sports programs. This unsuccessful play-action may force the school's head honchos to seek a plum check from Uncle Boone.

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goodbyelakers

You mean to tell me that none of the 27 geriatric clients couldn't have accidently fallen down the stairs?

March 23 2012 at 3:27 PM Report abuse rate up rate down Reply
dnsh

Who in their right mind would listen to T. Boone Pickens? What a bunch of greedy morbid turds.

March 23 2012 at 4:24 AM Report abuse rate up rate down Reply
dnsh

Who in their right mind would listen to T. Boone Pickens? What a bunch of greedy morbid turds.

March 23 2012 at 4:24 AM Report abuse rate up rate down Reply
journeybird

Really....$33,000,000? How many kids could have gone to college on that? What an immoral waste of money.

March 23 2012 at 2:11 AM Report abuse rate up rate down Reply
cfinde

What did you expect? This is OSU after all... not exactly the most intelligent place on earth..

March 23 2012 at 1:23 AM Report abuse rate up rate down Reply
1 reply to cfinde's comment
rideropurplesage

Really, and if they woulda been using their heads they coulda used manditory urinalisys in the name of drug prevention to determine underlying health risks and trimmed the "odds".

March 23 2012 at 2:54 AM Report abuse rate up rate down Reply
shelley2499

I hope they all live to be at least 102!

March 23 2012 at 12:57 AM Report abuse rate up rate down Reply
Susan Carmena Hernan

Serves them right!

March 23 2012 at 12:29 AM Report abuse +2 rate up rate down Reply
mschroe477

I can believe that School sponsored (be it College or High School) "Fund Raising" in this day and age would disregard Ethics, Morals, and most importantly, Human life values, to bulk as much money, no bars held, from any source, legal, illegal, lying, or cheating in the name of FOOTBALL! I hear of College football programs costing over 100 million dollars. What in the hell do they spend that kind of money on? The schools wouldn't be buying players cars, condo's, vacations, jewelry, and women would they? I'd like to know, what kind of prayers do they say together just before the game? Maybe, "Lord, you have so graciously blessed this team of young Christian Soldiers to go do battle today against an Evil Football team lead by Satan himself...we thank thee for tho hast showered us with monetary riches of millions of dollars raised by others, because our first team needs to concentrate on football only, and we thank thee for providing answers to all the tests these young men face in the DEMANDING CLASSROOM STUDIES, Say AMEN!, and we know you will provide us with a Hail Mary if it will win us the game in the final seconds, and after the game, to help these Warriors of the Cross of which Jesus died for our sins on, to help keep these Pure young men close to home, by providing them with female company, Praise Jesus, and we will show our appreciation by winning this game for the Lord! Praise Jesus, AMEN! OU, OU, OU, GO GO GO. Now that's what I call getting your money's worth in Education! YEAH!

March 23 2012 at 12:13 AM Report abuse +1 rate up rate down Reply
Rosey--<-<--@

Betting on peoples deaths? How grim & sadistic is that?

March 23 2012 at 12:07 AM Report abuse +1 rate up rate down Reply
2 replies to Rosey--<-<--@'s comment
Barry Levy

it isn't exactly betting on a person to die, they will die eventually.

What it is, is a trade. The person with the policy, which may do them no good when they die, gets cash immediately and the person giving them the cash, becomes the beneficiary.

If this is done properly, you only do this for aged people, and peole that you know have a medical history that gives them a limited life span.

March 23 2012 at 1:30 AM Report abuse rate up rate down Reply
2 replies to Barry Levy's comment
ungrumpy1

Who gives cash immediately for a life insurance policy? OSU was betting that enough old folks would die within a certain time frame to off-set the premiums. They didn't have to ask the old folks, OSU paid the insurance premiums to the insurance company. Why would the insurance company then pay money out to the old folks?

March 23 2012 at 3:14 AM Report abuse rate up rate down
ungrumpy1

Maybe I got it now, you're saying OSU paid the old folks for the privileged of taking out life insurance on them? This article didn't mention if there was money given to the old folks.

March 23 2012 at 3:22 AM Report abuse rate up rate down
JohnBoy

Don't insurance companies do the same thing . . .betting you won't die ?

March 23 2012 at 5:04 AM Report abuse rate up rate down Reply
rickets99

Pickens probably got the idea from the many "dead peasant" policies taken out against everyday employees of many Fortune 500 companies. Both Walmart and Winn Dixie have been sued over it, but an estimated 1/5 of all life insurance sold is now "dead peasant," so it's got to be millions of people in other companies. In some states, employers don't even have to tell you they did this. They just have staff to scan the Social Security death index and collect as even their former employees pass away.

March 23 2012 at 12:02 AM Report abuse +1 rate up rate down Reply
1 reply to rickets99's comment
richvaitalian

Exactly - it's a sad but true practice that makes money for so many companies.

March 23 2012 at 1:15 AM Report abuse rate up rate down Reply