NFL & Retirees Remain in Tussle on Benefits
by Diane M. Grassi, dianegrassi@blackathlete.com NEVADA -- Super Bowl XLIII was no better a reminder as to why so many Americans have made the National Football League (NFL) the king when it comes to the most watched professional sports league in the United States. And it is no coincidence that it continually is rated the favorite of sports fans in poll after poll. Additionally, the NFL also has bragging rights when it comes to yearly revenue, expected to be about $8 billion for the 2008 season as compared to Major League Baseball's nearly $7 billion annually. And there is perhaps no better time to remember those who made it possible for the NFL's owners and players today to be able to revel in its continued success, by virtue of the players who helped to build the league. For the past couple of years, it has become public knowledge that a select group of retired NFL players have been struggling physically and economically since putting their playing days behind them. It is a serious matter, covering a complex and vast number of interrelated issues, rife with conflicts of interest. Most knowledgeable sports fans realize that the professional sports industry represents another sector of big business. And that it too at times opens itself up to public scrutiny as concerns legalities, commerce and anti-trust issues, not to mention pleasing its fan base, the consumer. But in this particular case, there has been dissent from numerous camps. The question remains as to whether there is a solution to help make those former NFL players whole again, to some extent legally, but moreover whether there is any moral obligation to ill and/or financially strapped former players by the NFL, the National Football League Players Association (NFLPA) or even individual players. Given the complicated nature of this topic and its intertwining issues, it would fail to do it justice to assume it can be covered in one short article. However, it is important to keep illuminated some of the unresolved issues. And in that effort the following quote perhaps best describes the conflict at hand. How prevalent its sentiment is among current NFL players is hard to quantify, but at the very least, it needs to be more prominently exposed: "There are some guys out there that have made bad business decisions. They've had a couple divorces and they're making payments to this place and that place. And that's why they don't have money. And they're coming to us to basically say, 'Please make up for my bad judgment.' In that case, that's not our fault as players." That quote was made by New Orleans Saints quarterback, Drew Brees, in Tampa, FL, during the week leading up to Super Bowl XLIII. He had been asked about the organization, Gridiron Greats, the non-profit organization which has raised funds and provided public awareness for alumni players who suffer disabilities and lack sufficient funds for costly medical care and insurance. Brees, initially responded that Gridiron Greats' claims "are unfair because the picture they're painting is different than reality." But perhaps Mr. Brees was unaware of an express-mailed letter that current Minnesota Vikings center, Matt Birk, had sent to every single NFL player in late November, 2008, on behalf of the Gridiron Greats Assistance Fund. It requested that players donate a portion of their game check for Game 16 on December 21, 2008 to the non-profit organization for what was called Gridiron Guardian Sunday. According to Gridiron Greats' Executive Director, Jennifer Smith, that as of Thursday, January 29, 2009, a total of 15 players sent in check donations for the December 21st event. And to make it perfectly clear, the response was a total of 15 players league-wide, not 15 players per team. Matt Birk has noted that "The NFLPA has attacked Gridiron Greats, saying these retired players are in the predicament they are in because of their own doing, because of their own bad choices." Apparently Brees got that memo, but not Birk's letter. The NFL blames the NFLPA and the NFLPA blames the victims. And the history of the Collective Bargaining Agreement (CBA) but muddies the water some more. One needs a veritable map to follow the history of the CBA and its history with the NFLPA. It is but a fragmented tale that contains twists and turns including strikes, lockouts and continual changes in player benefits. Unfortunately, some former players' benefits are still tied to whichever CBA was in place at the time of their playing careers or the actual years in which they played. Also, it is important to point out that for players who played at a time before the multi-million dollar contract or who had a shortened career, pension benefits are based upon the number of years played, not on earnings. In either case, it is a lose-lose for many. In fact, the poor administration of pension and healthcare benefits certainly cannot be laid at the feet of former players, as the NFLPA would like to do. And given that the NFL administers the actual benefits fund, that is exactly what happens. But it has only been since 1993 that a more encompassing CBA was installed, following years of sub-standard pension and healthcare benefits, that began in 1959. At that time, the benefit plan kicked in at age 65 and was administered by team owners. The Total Disability and Permanent (T&P) disability benefits and line-of-duty (LOD) disability benefits were established in 1970. However, to date, the criteria and claim filing procedures lack transparency and clarity for players. In general, only 42% of those applying for disability benefits ever receive them. The number of players who have applied for disability benefits and were denied them remains information hard to come by.A former player may be disabled and suffer from a condition or illness that interferes with his activities of daily living from either a direct or an indirect result of playing in the NFL. Yet, he may not be receiving any disability benefits at all. And most stunning of all, is that there is no comprehensive data kept about the health of former players that has either been collected or maintained by the NFL, the NFLPA or a third party designate. That means that out of the 13,000 former NFL players, of which 7,900 are fully vested for benefits, there is only documentation available for those players that have filed disability claims. Furthermore, neither the NFL nor the NFLPA collects any data on the number or percentage of players who retire because of an injury or injuries. It cannot be made more clear that unlike other professional sports, the NFL player injury rates are nearly 8 times higher than that of any other professional sports league including the National Hockey League (NHL), the National Basketball Association (NBA), Major League Baseball (MLB) as well as the National Association for Stock Car Auto Racing (NASCAR). And for that reason, it has become more and more difficult for former NFL players to overcome the hurdles necessary to receive the health and disability benefits they desperately need. The NFL is a collision sport, rather than just a contact sport which the NFL routinely says it is. And the physical toll that it exacts upon its players, especially for those who play many more years than the average player that lasts 3-4 years in the league, the long-term health impact may not be realized for several years after leaving the game. When a player walks away from the NFL without catastrophic injury, it should not relieve the NFL or the NFLPA of their obligation to allow players to continue some semblance of an adequate quality of life for chronic disabilities suffered thereafter. During this economic crisis, big business has shown that it takes no prisoners. But let us hope that the NFL, its players union and its individual players give a bit more thought to those who came before them. And let not the economy be the convenient excuse to not do the right thing.
POSTED: Feb 5, 2009
As such, it has garneted the interest of the U.S. Congress which held several hearings over the past two years, with the generation of a report by the Congressional Research Service, as regquested by the House Commercial and Administratiave Law Subcommittee of the House Judiciary Commitee, and dompleted in April 2008.
Pay it forward.
The Mission of the RPAA
After more than a year of evaluating the discussions and disagreements between the NFL, the NFLPA and the
various different groups of retirees, I have come to some rather finite thoughts. Probably the most prevalent thought
or position is that of absolute absence of a Common Cause or Common Solution. This is probably the result of a many
faceted need situation by various retirees along with interests of the different organizations that would be the final recipients of any solution.
Let us first define the various interest groups. They are: The NFL Owners, the NFL Administration which includes Executives and managing officers, the NFLPA which in itself is divided by the present players group and the retired player grouping...the benefit package for the present players is much more lucrative than that of the past players which is one of the methods by which the current, and past, NFLPA executives have remained in their high income positions.
The NFL Owners are a group that are easy to identify...they own the franchises. These franchises are corporate
structures functioning to create profit on the money they invested to purchase their respective franchises. While
each franchise is structured differently, and managed separately, their facilities (mainly stadiums) are probably
the biggest difference in their individual financial balance sheets. The ownership of these facilities varies greatly from
privately financed by the owner to publicly financed by citizen backed bond issues. The majority of the franchise
income comes from television contracts and cash flow from the various NFL subsidiaries that provide souvenir clothing
and objects for the public. Attendant revenue has become minimal when compared tothe young NFL in the 1950's.
While a respectable return on their investment is much expected and encouraged, there should be a degree of transparency required in a non-monopolistic industry that employs a participant union and in many cases employs
the use of public financing for their stadiums. The NFLPA, with present players and those of the older generation,
was founded for both owners and players to benefit in the rapid interest the public generated through the success
of the 1950's NFL exposure to the nation through the growing phenomenon of national television. This rapid
explosion in franchise revenue and ultimate franchise value which was primarily the result of the "Game of the Century" that was televised nationally for the first time in 1958. Prior to this event, the NFL was basically 12 teams and expanding to 14 in 1960. As an interesting case in point, in the late 1950's one half of the Los Angeles Rams was purchased
by the other 50% owners for between $3 to $4million...that put this franchise at a value of somewhere around $8,000,000
maximum. In todays market, a franchise could sell for a minimum of one billion dollars. Wow! In retrospect, it seems that the success of the original 12/14 NFL teams in the 1950's, and the players that were a part of this national excitement, should be recognized as pioneers of a billion dollars industry and perhaps be remembered honorably.
Originally transparency was avoided by allowing the struggling oringinal owners, and rather risky investment of the 12 team NFL, an exclusion from the Sherman Anti-Trust Legislation. In effect, it allowed these owners to run their business as individual operations that had no connection to the possibility of an industry that was monopolistic in character. It was probably the right position by Congress in 1950's when each franchise was struggling separately without a true central controlling NFL body that had television contracts or the publice desire for the billions of dollars for various collectible souveniers from their favorite team or players. The NFL Headquarters had no contracts with television and/or corporate America for individual player endorsements. Several teams did have local television contracts in their respective regions, but this revenue went to the individual teams. There was no sharing of revenues at that time...again, until after that "Great Game".
Prior to the 1960's there were no reasons for the existing NFL structure to be restricted by the Sherman Anti-Trust Act. Each property acted in their own interest to this point and there were not immediate possibilities of collusion of power to exclude others from forming their own league. There was not a union of players seeking benefits of protection. Most players knew they were a part of a growing public interest, but had no intention of asking the owners to supply them with benefits...other than please let me play this year for a salary. Because of the rising value of franchises due to an ignited public interest in this new television awareness world and the expanding Post WWII economy, the public had taken great interest in Professional Football and the television of the product. Now we had some new wealthy entrepeneurs starting a new league...the AFC. The eventual, though questionable at the beginning, of this league concluded in a merger of the NFL and the AFC. They were definitely not in the non-monopoly category any longer. These 32 NFL teams are closely regulated and managed by the owners through their organization of the National Football League and would qualify for any Webster Dictionary definition of a Monopoly.
We now operate in the 21st Century with the 32 team league and have a several billion dollars national television contract along with multiple endorsement and financially backed packages with which the NFL is the recipient along with their NFLPA partner. Even the players, when signing an endorsement, must do so with the approval of the NFL and the ultimate sharing of that contract with the NFLPA. This has gone a long way from the monopolistic protection via the Sherman Anti Trust Laws to a complete non-transparent monopoly by the NFL and the NFLPA. There should be a wall between the NFL owners and the NFLPA player union, however, the wall is very thin in reality because of the structure to date. The Commissioner of the NFL and the President of the NFLPA have been inseperable. The relationship is definitely not like other industries in the United States where the Corporate management is not one with the union officers. Not in the case of the NFL and the NFLPA. Also, it is in the interest of both these intities, and has been the absolute practice, to negotiate with the present day players and forget about those who could no longer run off tackle, block or knock someone down. This results in many young men dedicated to this profession without the history of their obligation to those who put them in their very lucretive position. They too wlll ultimately suffer some of
the same consequences that those before them suffer.
Unfortunately the above evolution has resulted in many of the "older" retiree generation living in a situation, although not caused solely by the NFL but more likely the NFLPA, that needs to be resolved honorably. The generation that
helped build this monolithic sports giant is slowly dwindling because of the age and health factors. Many are in bad shape mentally, physically and financially because of various factors. It should not be overlooked that even though the present day players are doing quite well in the compensation factor many of them will also find themselves in this position later in life. It has been recorded by a major athletic equipment manufacturer that more than 50% of the present day professional athletes are broke after five years of retirement. Believe me, they will need help also. Therefore let us solve this equation now without going through all types of litegation and Congressional hearings vis-a-vis Sherman Anti-Trush exemptions and transparency.
The present status of the NFL and NFLPA versus the "older retirees" should be solved by the present leaders of all the various groups involved. One solution, and a very doable one now with a new Administration that believes in Universal Health Care, could be that many of us of the older retired generation contact our various Congresspeople
and/or Senators in each of our respective States to give them the knowledge we have of the above evolution of the
league. Perhaps their interest could lead to a reevaluation of the Anti Trust exemption. This seems to be our only weapon in negotiating with either the NFL owners or the NFLPA. We cannot threaten them with a strike or a walk out...so what? The NFL is extremely interested in keeping this status, while the NFLPA management is only interested in keeping their high salaried positions by satisfying the present day players. They have absolutely no interest in the plight of older players...even though many of the ones I know and watch probably would not have made the original NFL and should be more than willing to assist the deminishing number of the older generation. We should not ask for a solution like that at General Motors where GM has become less of a car manufacturer, but basically a Pension and Health Care organization.
In lieu of asking Congress for transparency, we just ask to put our pension benefits on a par with Major League
Baseball and the National Basketball Association. Merely increase the monthly benefits to an equal with the above, then the recipiants could be responsible for their own knee replacements, medicine, home care and other needs that
could be handled on a monthly basis.
Jon Arnett