It's a testament to the NFL's massive financial success that they can claim victory while still agreeing to hand over $765 million. The truth is, that if the massive proposed settlement, to be paid out to former NFL players and their families, holds up it will be a huge win for the NFL and commissioner Roger Goodell. As evidence grows that NFL players risk serious life-altering health risks due to concussions and other serious injuries, this settlement, which undoubtedly will help the players involved and their families, effectively ends the first major threat to the NFL's current existence without forcing the league to make meaningful changes.
At first glance it might seem like the NFL has lost big time here, having been forced to pay out $765 million to over 4,500 former players, with that total before factoring in lawyer fees, "to fund medical exams, concussion-related compensation, and a program of medical research''. While this would come out to about $170,000 per player if handed out equally to each player, it's been reported that the actual payouts would be tied to the individual's specific medical conditions. Plus that estimate also factors in around $75 million of the settlement would go towards medical tests and there would be around $10 million leftover for further scientific research.
So, make no mistake, this is a significant amount of money, don't expect Roger Goodell to pull a Randy Moss and joke about paying it out in "straight cash homey", However, even a quick look at the NFL's finances makes it very clear that this will not be a crippling blow. The NFL made $9.5 billion last year alone. In relative terms this is a small price to pay to avoid confronting the fact that they have literally been killing their employees. On top of this, around half of this money will be doled out over the course of the next 17 years, severely lessening the immediate financial consequences for the league. (...)
As Grantland's Bill Barnwell notes, this settlement allows them to pay off the plaintiffs without acknowledging any liability, pretty much the best case scenario imaginable. Not admitting fault gives the NFL a much better chance at defeating future lawsuits, which are nearly inevitable.
The timing is perfect as well. By resolving this lawsuit before the start of the NFL regular season, Goodell ensures that at least this particular story won't distract fans from the on-field product, which is as popular and profitable as it has ever been, once the real games begin.
At first glance it might seem like the NFL has lost big time here, having been forced to pay out $765 million to over 4,500 former players, with that total before factoring in lawyer fees, "to fund medical exams, concussion-related compensation, and a program of medical research''. While this would come out to about $170,000 per player if handed out equally to each player, it's been reported that the actual payouts would be tied to the individual's specific medical conditions. Plus that estimate also factors in around $75 million of the settlement would go towards medical tests and there would be around $10 million leftover for further scientific research.So, make no mistake, this is a significant amount of money, don't expect Roger Goodell to pull a Randy Moss and joke about paying it out in "straight cash homey", However, even a quick look at the NFL's finances makes it very clear that this will not be a crippling blow. The NFL made $9.5 billion last year alone. In relative terms this is a small price to pay to avoid confronting the fact that they have literally been killing their employees. On top of this, around half of this money will be doled out over the course of the next 17 years, severely lessening the immediate financial consequences for the league. (...)
As Grantland's Bill Barnwell notes, this settlement allows them to pay off the plaintiffs without acknowledging any liability, pretty much the best case scenario imaginable. Not admitting fault gives the NFL a much better chance at defeating future lawsuits, which are nearly inevitable.
The timing is perfect as well. By resolving this lawsuit before the start of the NFL regular season, Goodell ensures that at least this particular story won't distract fans from the on-field product, which is as popular and profitable as it has ever been, once the real games begin.
by Hunter Felt, The Guardian | Read more:
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