A Massachusetts-based furniture store, Jordan’s Furniture, ran a “Monster Deal” promotion (named for the left field Green Monster in Fenway Park) this past spring that promised to customers a full refund on certain furniture purchased between March 7th and April 16th if the Red Sox were to win the World Series. The refund applies to sofas, dining tables, beds and mattresses.
The retailer, owned by Berkshire Hathaway, wisely purchased an insurance policy to cover the possibility of a Red Sox victory. Such insurance, referred to as prize indemnification insurance, is often associated with odds makers in Nevada, and can cost as much as 30% of the value of the merchandise at stake.
Although Jordan’s Furniture CEO Elliot Tatelman will not disclose from whom they purchased the policy, it apparently is comprehensive enough to allow Mr. Tatelman to continue rooting for the Red Sox. According to Mr. Tatelman, “…I would have never done it if I was going to be rooting against the Red Sox.”
With a 2-0 lead in the best of seven series, a payout to the furniture savvy Red Sox faithful appears to be a strong possibility. As a result, the insurer underwriting Jordan's policy can probably be added to those baseball fans hoping the Rockies will make a comeback.