Written by Jeff Nixon, posted June 22, 2010
At the NFL Players Association Convention in Maui, a resolution entitled Former Player Members Expression of Support was passed by the active players. NFLPA lawyer, Thomas J. DePaso was responsible for writing down the wording of the resolution which states the following:
RESOLVED, that the NFLPA Former Player membership expresses its full support for the active NFLPA membership in their demand during their CBA negotiations that the NFL and its member Clubs establish a Legacy Fund for Former Players to be funded by 2% of the profits generated by the NFL and its member clubs each year; and that the Legacy Fund be used to increase the pensions of all Former Players who have a credited season before 1993 and who are currently receiving a pension by an additional $2,000 per month.
After reading the resolution, the old saying came to mind; “The minute you read something that you can’t understand, you can almost be sure that it was drawn up by a lawyer.”
Unfortunately, the resolution – although well intentioned – has a number of problems that need to be addressed.
First: Was it intentionally stated that the only players that would receive the $2,000 increase had to have a credited season before 1993 AND currently be receiving a pension?
If that is the case, then what happens to players that have a credited season before 1993, but haven’t started taking their pension? Under the proposed resolution, these players would receive no increase.
Secondly, the resolution would punish those players that have deferred receiving their pensions until age 65 and it would reward players that took early pensions. That doesn’t sound very fair.
This resolution could have the negative effect of prompting hundreds of players into taking an early retirement benefit in order to qualify for a $2,000 pension increase…… that may not even happen!
The resolution, in its present form, would deny the $2,000 pension increase for many of the men that were involved in the player strikes of 1982 and 1987. That is totally unacceptable!
As any lawyer will tell you, words are important and that is why the wording in this resolution needs to be clarified. At Fourth and Goal we would like to see the resolution drop the wording “AND currently be receiving a pension.” It should simply state that all players with a credited season before 1993 would be eligible.
We previously addressed this issue in an open letter to Cornelius Bennett, the Chairman of the NFLPA Former Players Board of Directors. To date, we have not received a response.
I should also note that DeMaurice Smith has already moved away from a commitment to the $2,000 per month increase. In an interview with SB Nation NFL Editor – Joel Thorman, Mr. Smith said “I’ve said every team should make a contribution of at least a million dollars a year for a total of $32 million a year for what I would call the legacy fund. That legacy fund should go to all the players pensions who played prior to 1993 and that would increase all their pensions by, get this, $1,000 per month.”
Yeah, “we get it”…….you’ve already lowered our expectations!
Mr. Smith also creates additional confusion by saying that the legacy fund should go to all the player’s pensions who played prior to 1993, but the resolution states that if you have a credited season before 1993 you would be eligible. If you go by the resolution, you could have started playing in 1992 and finished your career in 2002 and still be eligible for the Pension increase because you had a credited season prior to 1993. Based on DeMaurice Smith’s statement, it appears that you may not be eligible if you played anytime after 1992.
Confused yet?
In our open letter to Cornelius Bennett, we also discussed our concerns with the establishment of a “Legacy Fund”. It would be great if the owners were open to this idea, but they’re not. There is currently a retired player Class action suit against the NFL and NFL Films over this very issue and it is unlikely the owners will address it in Collective Bargaining talks until the suit has been settled.
In the SB Nation interview, Mr. Smith said “You walk into a stadium in America, there will be a ring of fame or wall of fame for all of those legacy players. So I know individual teams sell legacy. My problem is they don’t pay for it. And because no teams pays for that legacy while they’re selling it, I think if you’re a star running back for your local team and your local team continues to use your name and picture, put it on the wall and basically tells fans to buy tickets for that history, that legacy, that player. You don’t pay that player anything.”
The owners may not be paying former players directly, but the fact is, the owners have been paying indirectly for our “Legacy” because under the previous CBA’s any revenue the teams make from selling “legacy” and all the other revenue (including the tickets fans buy) is included when the Salary Cap is calculated.
The active players have been getting anywhere from 50 to 60 percent of the owner revenue via the Salary Cap over the past 17 years. During that time, the owners have been doing a pretty good job of marketing the NFL and our “legacy” and that is one of the big reasons why the Salary Cap has gone up every year since it was first estbilished in 1993.
The sad truth is that our “legacy” revenue goes to the active players. The active players then make decisions on where that revenue – and all other owner revenue is spent. Since 1993 we have seen a majority of the revenue being redirected from the Pension Plan and put into other “retirement type” benefits such as the Second Career Savings Plan and the Annuity Plan.
So the question could be asked “Why aren’t the active players paying former players for their “Legacy” out of the 60% of revenues they receive from the owners?
It’s not like they’re going to go hungry if they share a larger slice of the pie with retired players. The average salary is 1.7 Million and the benefits are the best in professional sports.
On top of that, the owners have been pretty generous when it comes to paying active players for their images. Images that will some day also become part of the “Legacy”. NFL Ventures paid the NFLPA almost $44 Million dollars last year for player marketing and sponsorships that went right into active player pockets.
I don’t know about other retired players, but I find it rather hypocritical of the NFLPA to be asking the NFL to give us additional money for our Legacy, but when the NFLPA had the opportunity to pay us for our Legacy through Group Licensing Agreements with EA Sports-Madden Football, they told them to scramble retired player images so they wouldn’t have to pay us anything.
If the NFLPA can find a way to wrestle additional money away from the NFL owners by way of a “Legacy Fund” that would be fantastic. Unfortunately, the owners have a pretty good argument for saying they have already been paying the NFLPA through the previous revenue sharing agreements.
We hope the NFLPA doesn’t put all its eggs in the “Legacy Fund” basket. There is still another option.
Many active and retired players believe that the time has come for the establishment of a Rookie Wage Cap. The hundreds of millions that could be saved from instituting the cap could be redirected into veteran player pockets and the pension plan. 80 NFL Hall of Fame Players have asked the active players to get it done. The NBA has instituted a Rookie Wage Cap, so what is the NFL waiting for?
Mr. Smith needs to start listening to the NFL’s greatest players and the former players that built the “Legacy”.
Very Interesting infomation, thank you so much.
Well said indeed. Thanks for keeping us informed. I have been saying this for years. That the current players have control of the money and has not funded any programs for players before 1993. the owners have a valid arugment when they say we gave them the money the NFLPA placed it were they wanted it placed. In the pockets of those who keep them in office.
Conrad Dobler
As is typical with the NFLPA, nothing ever comes out of THIER pocket. The plethora of revenue generating opportunities, like the EA Sports issue, continually fall to the wayside for former players, while active player compensation seems to no no bounds.
Smith won’t talk to George Martin, he won’t meet with retired players outside the PA family, and he offers nothing but condesention toward anyone who suggests diverting funds from a Rookie Salary Schedule to be used to bolster retirement benefits.
The PA’s “All for one, and one for all–except you old farts” attitude needs some serious adjustment.
Oops!
As is typical with the NFLPA, nothing ever comes out of THEIR pocket. The plethora of revenue generating opportunities, like the EA Sports issue, continually fall to the wayside for former players, while active player compensation seems to no no bounds.
Smith won’t talk to George Martin, he won’t meet with retired players outside the PA family, and he offers nothing but condesention toward anyone who suggests diverting funds from a Rookie Salary Schedule to be used to bolster retirement benefits.
The PA’s “All for one, and one for all–except you old farts” attitude needs some serious adjustment.
Quote: “RESOLVED, that the NFLPA Former Player membership expresses its full support for the active NFLPA membership”.
What is the “NFLPA Former Player” membership? How many “former players” were polled? Unless EVERY former player was polled, and EVERY ONE “expressed – - – full support”, how can a statement like that be included in a resolution?
Pingback: Questions raised over NFLPA Legacy Fund Proposal « NFL Pension & Disability Reform
The past and present failures of the NFLPA and the NFL Retirees with the NFL occur because of poor strategies. Super Stars cross the line and putting there interest before the group, and the organization leadership strike or protest at the beginning or summer; not during the playoffs.
The threat of a lockout is intended to weaken the NFLPA membership by holding payrolls. The players must understand for every preseason and regular season check the players missed the owners will miss a playoff games.
If the NFLPA and the NFL Retirees are not prepared to do what it take to win the battle, the Super Stars and NFLPA leadership will continue to sacrifice players careers by none support and crossing the line. Lets recall who walked and who crossed; maybe there is a lesson to be learned. Networking, inclusion, collaboration and transparency are important elements to gain public support.
NFL Retirees message must be focused, clearly articulate and promote the image and contributions of NFL Retirees. I remember who crossed the line and the retailiation against the players that stayed united. Be aware of the sale-outs. We can not afford to make heros out of sale-outs. If the NFLPA and NFL Retirees don’t appreciate and support the players that walked the lines and withstood the hardship for our benefit, we will continue to follow the goats to the slaughter.
It appears to be the same old story, american greed. When some people have an opprotunity to make money their greed gland starts producing that hormone,it addicts people to money. And when people are addicted, they want to get that fix, and hell with anybody else. If any of you retired players can remember, it was all about the now and the future, not the past. When you were playing, if I am wrong, let me know. I agree with Jeff, it’s sad,
the NFLPA is not looking in the mirror and the active players are just doing what comes naturally. If any retired players are factoring in a increase in their future pension payments,you might as well be waiting for the second coming of the lord.
They must think we are all mushrooms, because they keep us in the dark and feed us S..T!!! Interesting how the words keep being twisted and turned too. Same old crap, just a different day.
Leaving out any increase for those who waited to receive their pension benefit is a very good idea—-IF YOU WANT TO INSURE A COMPLETE AND PERMANENT LOSS OF THE ATTENTION AND PARTICIPATION OF EACH AND EVERY RETIREE ADVERSLY IMPACTED (i.e. LEFT OUT.). It will be finito, over, kaput
I have a problem with the definition of a “credited season”. As I understand it, a former player needs 4 years of being on a roster in order to be eligible for pension benefits. I got in 3 seasons. Thus, I get no pension at all, although I just had shoulder replacement surgery that was caused from playing football. I also played one year of football in Canada and I get a pension from that! I would like an emphasis placed on reducing the number of years one has to play to get a pension. Personally, if someone makes a regular season roster, he should be eligible for a pension for each year on that roster.