Skip to main content

NFL agrees to remove cap on concussion damages

By WTOP Staff

BARRY WILNER
AP Pro Football Writer

A revised concussions settlement between the NFL and former players could shrink the league’s coffers. Only marginally, though, and not for a long time.

The NFL agreed Wednesday to remove a $675 million cap on damages from thousands of concussion-related claims. A federal judge who originally questioned whether there would be enough money to cover as many as 20,000 retired players still must approve the new terms.

The settlement is designed to last at least 65 years and cover retired players who develop Lou Gehrig’s disease, dementia or other neurological problems believed to be caused by concussions sustained during their careers. Removing the cap might lead to the NFL paying out more money to ailing former players, even though the league and lawyers for the plaintiffs believe the $675 million won’t be surpassed.

“If exceeding that number happens, it is well down the road,” said Marc Ganis, president of Chicago-based consulting firm SportsCorp and a close observer of league business. “I don’t foresee anything in the next four or five years.

“This has the benefit of getting money to the families and people who need it now. If the actuarials are wrong, the additional money would not be paid for a while down the road. By then, there will be new TV contracts, the league will have grown more (financially).”

Although the original settlement was trumpeted by both sides, U.S. District Judge Anita Brody denied preliminary approval last January. Her concerns centered, simply, on whether there was enough money in the pot to satisfy all the legitimate claims; some 4,500 retired players were part of the lawsuit. Projections indicate many more will need help.

Dozens of ex-players also have said they would not take part in the original settlement, against the advice of the plaintiffs’ attorneys.

“Some of the players were concerned and asking questions about whether they could be in a deal if they weren’t sure there’d be money there for them 40 years from now if they get sick, God forbid. … That’s what drove these changes,” plaintiffs’ lawyer Christopher Seeger said.

The original settlement included $675 million for compensatory claims for players with neurological symptoms; $75 million for baseline testing; and $10 million for medical research and education. The NFL also would pay an additional $112 million to the players’ lawyers, for a total payout of more than $870 million.

The revised settlement eliminates the cap on overall damage claims, but retains a payout formula for individual retirees that considers their age and illness. A young retiree with amyotrophic lateral sclerosis, or Lou Gehrig’s disease, would receive $5 million. A 50-year-old with Alzheimer’s disease would get $1.6 million. An 80-year-old with early dementia would get $25,000.

Where will the money come from? The NFL isn’t exactly hurting for income as it approaches $10 billion in annual revenues.

“This comes out of their bottom line, although it is not a huge part of their bottom line,” said David Orentlicher, a law professor at Indiana University’s Robert H. McKinney School of Law. “But anytime a business’ prices and costs increase, they try to pass off as much as they can. If they can pass it all off, they will. Sometimes you have to eat some of it.

“The questions become, have they already maxed their prices for tickets and broadcast rights and sponsorships and the like?”

With new TV deals upcoming and the surging popularity of pro football, it seems unlikely the NFL has maxed out its earning potential.

Critics of the deal have said the league is getting off lightly. Others point out, as did Ganis, that the timing of getting payments to the injured or ill is the most crucial element.

One of the plaintiffs is Kevin Turner, who played for the Philadelphia Eagles and New England Patriots and is now battling ALS.

“The compensation provided in this settlement will lift a heavy burden off of the men who are suffering,” he said in a statement. “I am also personally comforted by the knowledge that this settlement is guaranteed to be there for any retired player who needs it.”

Orentlicher projects the NFL will surpass the payouts of the original settlement agreement.

“It would be very surprising if their ultimate payoff is not significantly greater,” Orentlicher said. “I think they will spend more money as a result of this. It’s just the nature of these kinds of settlements.

“If this is all the NFL has to pay, the owners will be very happy. When you add up all the damage these players are suffering and all the money teams have earned as a result, this isn’t sufficient to compensate for the harm.”

___

Associated Press Writer Michael Rubinkam contributed to this story.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote