Judge Rejects NFL Concussion Settlement

Joe Di Bartolomeo
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As widely reported in the media, former NFL players filed a lawsuit against the league, claiming that the NFL failed to properly warn players of the risks associated with multiple concussions, and also take precautions to protect the players. The players claimed that the NFL new about the dangers of the jarring and violent play on the football field, but did do the right thing for its players.

After extensive litigation, the parties entered into an agreement providing $765 million as a fund which would pay individual players compensation for the neurological problems they suffered as result of their careers. Under the terms of the agreement, no single play or could recover more than $5 million.

However, a federal judge recently expressed concern about the settlement amount. Under the terms of the settlement, the judge noted that the settlement plan would be stretched out the cover over 20,000 former football players for up to 65 years that come forward with a claim. Using simple math, the judge illustrated that if 20,000 players made claims, and the settlement funds were divided equally, each play would only recover approximately $38,000.

Of course, the NFL disagrees, and intends to provide additional information showing that the settlement terms are reasonable.

By the way, some reports estimate that the NFL earned $9.5 billion in 2011 and 2012.

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