NFL Pension and Disability Dispute Presented by: Ryan Cantrell Erin Powers Laura Appelbaum Shana Courtney

Overview NFL Facts Players are consistently becoming bigger, faster, stronger Significant increase in dehabilitating injuries Avg. length of career = 3.5 yrs. NFL revenues ~ $7-8 billion/yr. Avg. player salary = $1.1 million 3 seasons to fully vest in the retirement program 1 season = being on the active roster for 3 games in a year Presenter: Ryan

Overview 1959 – first retirement benefits introduced 1962 – first disability benefits introduced 1993 – added a 401(k) & improved disability benefits However… In order to qualify for disability benefits, one must be “totally and permanently disabled” Totally and permanently disabled means “the extent that he is substantially prevented from or substantially unable to engage in any activity for remuneration or profit” Presenter: Ryan

Overview In 2006, only 3% of retirees were receiving any type of disability benefits Far more than 3% of retirees struggle with serious injuries that require treatment As a result of such tough restrictions and minimal distributions, several ex-players facing serious post- career injuries started to speak out in disgust Presenter: Ryan

The Players’ Claims… Greatly affects pre-1977 players More funding for the younger players Two undeniable facts: Many players suffer financially, physically, mentally and emotionally from playing the game The NFL is a $7 billion industry Presenter: Erin

Current Situation $61 million in pension is paid to players Majority goes to the post-1977 players Regarding disability benefits: Only 3% of retired players receive partial or permanent disability benefits NFL Pensions v. MLB pensions: $51,000 v. $175,000 Presenter: Erin

Players’ Testimonials Jim Otto of the Raiders and Dave Pear paid out of pocket costs of $500,000+ Bruce Laird reports that approximately 2,500 former players receive pension payments of $15,000 per year. Brent Boyd, a former Minnesota Vikings player suffering brain damage John Mackey and the 88 Plan Presenter: Erin

NFL’s Perspective - Pension NFL Player’s Association (NFLPA) governs benefit program Says ex-players do not always have their facts straight $82,000 taken from each of the 1,800 active player’s annual salary If NFLPA paid everyone for leaving, players would get permanent stipend and league would go broke Presenter: Laura

NFL’s Perspective - Disability NFLPA agrees changes must be made In 2007, started using Social Security guidelines to determine eligibility This plan pays up to $88,000/yr. for institutional care or $50,000/yr. for in-home nursing care for players with Alzheimer’s and dementia Of 1,052 applicants for disability compensation since 1993, 41% approved and 5% pending Plan lacks details Controversy regarding NFLPA retirement board Presenter: Laura

NFL’s Perspective - Medical League believes it provides sufficient benefits 5 years full-family medical service after player’s career is finished Former players are high risks, thus premiums are six figures per year Looking into lifetime coverage at discounted rates Presenter: Laura

Spend More Money Look to other professional organizations Major League Baseball (MLB) pays three times the amount in benefits as the NFL NFL could spend the same amount as MLB with the excess going to disability benefits Presenter: Shana

“Benefits” without Representation NFLPA’s executive director is voted on by current players only. Extend voting to former players to ensure fair representation. Presenter: Shana

Questions?