2012 Grand Final Week – Have you taken out draw insurance?
It doesn’t seem like it could ever happen, but it has. Yeap, but it won’t happen again, right? Its only happened like three times in history! But what if it does? What the heck am I talking about?
A DRAW IN THE AFL GRAND FINAL!
So what happens if it does? Well, firstly we come back the next week and do it all again! Teams have to get through another week, Gerald Healy talkes about how its wrong that there are three ways of deciding what happens in the case of a draw throughout the season (1.draw stands in H&A, 2.Extra time in finals & replayed Grand Final, 3. Replayed in the case of a drawn first Grand Final) and fans have to re-enter the ballot and re-purchase their tickets (AT FULL PRICE). This is an expensive exercise if you have a family or even for individuals! A family of 4 could cost $1300 odd dollars (2 Adults and 2 Kids). 4 adults could be close to $1600! Thats a lot of cash for the first time. Imagine that times two!
What if you could take out insurance against the cost of the second lot of ticket cost? What about if you could buy insurance that means instead of risking the need to spend $1600 you actually risk $40 to get the money to buy those tickets? (Note: This schema isn’t about getting the tickets, you would still need to go through the process to do that, this is about reducing the cost by risking a smaller amount)
Well I’m here to explain how the heck you can do it, as there are organisations that offer Draw Insurance and to be honest, I don’t think they even know that they do! Those organisations aren’t insurance organisations, they are betting organisations!
So whats the schema? Its betting on the Draw! So in my case, I use Sporting Bet. I have created an account with them (I actually had it from another year). Then I went to the AFL Grand Final betting. In the betting options, there is a market for Exact Winning Margin that has the Draw option at a price of $41 for “Scores Level” (aka Draw).
This means you can risk 1/41th of the cost of the Tickets to the draw in order to not have to “Pay” full price in the slightly unlikely even of another draw. Now you may say its a waste of $40, and look, I agree with you in many ways but, all insurance is about paying a little amount up front to reduce the cost of an unlikely event in the future. Examples: We all SHOULD take out ambulance cover. Most of us will never have to use it but if you did choose to save the $50 odd dollars a year and then, god forbid, you need to use an ambulance, it costs thousands of dollars. This is the same theory. Spend a little up front to reduce potential in the future.
I wonder if looking back, how many Collingwood or St Kilda fans wish they took out draw insurance in order to save themselves from forking over large amounts in repurchasing Grand Final tickets?
What do you guys think? Am I onto something or completely lost the plot?