NFL, Former Players Reach Settlement

Just one week after we wrote about the impact of the NFL concussion/brain injury litigation, news broke that the parties reached a settlement. According to an AP report, the NFL has agreed to pay $765 million over the next 20 years to former players who developed dementia or other concussion related symptoms allegedly caused by football. The settlement applies to all past NFL players and spouses of those who are deceased — a group that could total more than 20,000. The vast majority of the settlement goes to compensating retirees with certain neurological ailments. In addition, it sets aside $75 million for medical exams and $10 million for medical research. The settlement now awaits court approval.

A three quarters of a billion dollar settlement sounds like a lot of money to most. To the NFL, however, it is less than one-tenth of its gross profit margin for the 2012 season. Couple that with the fact that the players sought $2 billion and the settlement might appear to be a sour deal for the plaintiffs.

According to a report out of Sports Illustrated, the deal may not be as bad as it appears. Apparently, U.S. District Judge Anita Brody informed the two sides that she was ready to side with the NFL and find that many who played during the former collective bargaining agreement (1994-2010) should be excluded. This ruling would have cut a large number of plaintiffs out of the class. SI notes that Judge Brody also indicated that since the league’s concussion committee wasn’t formed until 1994, those remaining in the suit would have a tough time proving any fraud allegations. And so it appears the players had some reason to negotiate. While the NFL had indicated it was willing to take the case to trial, it, too, had every incentive to reach a settlement. If the plaintiffs’ allegations are true, the NFL knew far more than it let on about the long term risks of concussions than it claims. By settling now, what it did and did not know won’t come out through the discovery process. Accordingly, the NFL can avoid the public relations nightmare of having to explain away any cover-up.

So, maybe this is one of those cases where just about everyone comes out a winner. Former players get a financial settlement. The NFL avoids a PR disaster. Current and future players benefit from additional research and a heightened awareness for safety. Fans get a new season without the hassles of litigation. Now, if we could just do something about those rule changes, everyone can move on enjoying the sport we all love.