PHILADELPHIA (AP) — A federal judge is slowing down the
proposed $765 million settlement of NFL concussion claims, questioning
if there’s enough money to cover 20,000 retired players.
U.S.
District Judge Anita B. Brody denied preliminary approval of the plan on
Tuesday because she’s worried the money could run out sooner than
expected. She also raised concerns that anyone who gets concussion
damages from the NFL would be barred from suing the NCAA or other
amateur football leagues.
"I am primarily concerned that not all
retired NFL football players who ultimately receive a qualifying
diagnosis or their (families) … will be paid," the judge wrote.
The proposed settlement, negotiated over several months, is designed to last at least 65 years.
The
awards would vary based on an ex-player’s age and diagnosis. A younger
retiree with Lou Gehrig’s disease would get $5 million, those with
serious dementia cases would get $3 million and an 80-year-old with
early dementia would get $25,000. Retirees without symptoms would get
baseline screening and follow-up care if needed.
"Even if only 10
percent of retired NFL football players eventually receive a qualifying
diagnosis," the judge wrote, "it is difficult to see how the Monetary
Award Fund would have the funds available over its lifespan to pay all
claimants at these significant award levels."
She asked for more
raw financial data before scheduling a fairness hearing this year, when
objectors can question the plan. The objectors could later decide to opt
out of it.
Law professor Gabe Feldman, who directs the sports law
program at the Tulane University Law School, called the ruling a
setback but said "there’s no reason to panic."
"The question
remains whether this gives pause to some of the retired players and
makes them question whether this is a settlement they want to be a part
of," he said.
Some critics said the NFL, with more than $9 billion
in annual revenue, was getting away lightly. But the players’ lawyers
said they would face huge challenges just to get the case to trial. They
would have to prove the injuries were linked to the players’ NFL
service and should not be handled through league arbitration. They could
end up with nothing.
Sol Weiss, a lead lawyer for the ex-players,
remained confident the class action settlement will ultimately be
approved. He said he was confident "that there will be enough money to
cover these claims for 65 years."
NFL spokesman Greg Aiello said
league officials were "confident that the settlement is fair and
adequate and look forward to demonstrating that to the court."
More
than 4,500 former players have filed suit, some accusing the league of
fraud for its handling of concussions. They include former Dallas
Cowboys running back Tony Dorsett and Super Bowl-winning Chicago Bears
quarterback Jim McMahon, who suffers from dementia.
The judge’s
hand-picked mediator, former federal judge Layn R. Phillips, led several
months of negotiations last year and has called the deal fair to both
sides.
The settlement would include $675 million for compensatory
claims for players with neurological symptoms, $75 million for baseline
testing for asymptomatic men and $10 million for medical research and
education. The NFL also would pay an additional $112 million to the
players’ lawyers for their fees and expenses, for a total payout of
nearly $900 million.
The NCAA clause is apparently designed to
prevent plaintiffs from double dipping. Feldman said he was unsure why
the NFL would insist on that.
Given the judge’s ruling, the two
sides could offer more evidence the fund would be stable, change the
payout formula or perhaps have the NFL add more money to the pot.
Otherwise, they may be left to start over.
"I think it’s a pretty
efficient way of doing things, rather than bring it up for the first
time at the fairness hearing," Matt Mitten, who directs the National
Sports Law Institute at the Marquette University Law School, said of the
judge’s opinion. "Some of these guys need the money right now."
Copyright 2014 The Associated Press. All rights
reserved. This material may not be published, broadcast, rewritten or
redistributed.