The estate of late Memphis Grizzlies forward Brandon Clarke will receive the full $12.5 million remaining on his NBA contract through a life-insurance policy purchased by the team. The development comes after conflicting reports initially suggested that Clarke’s estate would not receive the money. His agent, Mark Bartelstein of Priority Sports, confirmed that the contract was fully protected for death through the policy, allowing the full amount to be paid to Clarke’s estate tax-free.
via Yahoo! Sports:
Kevin O’Connor: NBA sources confirm that Brandon Clarke’s contract was completely protected for death. The $12.5M is expected to be paid in full through life insurance. An erroneous report said that the Clarke estate will not be paid out his $12.5M following his death in May. But the deal was negotiated for the Memphis Grizzlies to reimburse for life insurance to protect against the possibility of death, which is a customary approach to player contracts across the NBA. It provides the most beneficial protection for a player that can be negotiated in an NBA contract, since it provides tax advantages to the player.
