Professional Documents
Culture Documents
09/18/2007
TESTIMONY OF ROGER GOODELL
COMMISSIONER
NATIONAL FOOTBALL LEAGUE
BEFORE THE
COMMITTEE ON COMMERCE, SCIENCE AND TRANSPORTATION
UNITED STATES SENATE
the Committee:
Good morning and thank you for inviting me to appear today and testify on this
important subject. I do not believe that this subject is, or should be, immune from
Congressional scrutiny. To the contrary, the National Football League has always strived
to conduct itself in the public interest, and to do everything in a first-class way. We can
only benefit from objective, thoughtful reviews of our policies and programs. And so I
Player Programs, and Dennis Curran, our Senior Vice President and labor relations
counsel. Both Mr. Henderson and Mr. Curran have been deeply involved for the past two
of these benefit programs by the joint NFL-NFL Players Association Retirement Board.
I recently completed my first year as Commissioner of the NFL. During that year,
I have spent a considerable amount of time with retired players and on the concerns
raised by a number of them. And while I would candidly acknowledge that we have
more work to do, I want to outline both the steps taken thus far, and the framework
In that context I should add that I cannot comment on the specifics of any
individual case. In my role as Commissioner, I have not read the disability claims files,
and I am not qualified to speak to the medical and legal issues raised in any individual
case. Although I appoint one half of the Trustees on the Retirement Board, those Trustees
act in a fiduciary capacity and I never discuss pending cases with them. Insofar as you
may have questions regarding individual cases, I am certain that Mr. Henderson or Mr.
Curran, or one of Mr. Upshaw’s colleagues, could respond better than I can today.
In considering the subject of benefits for retired players, I begin from a premise
which I think no one seriously disputes – the men who played professional football
decades ago deserve our respect and recognition, and their contributions to our game
must never be overlooked. I honor them and their achievements and neither I nor the
Second, while it might be tempting to say – as some have – that this is Gene
Upshaw’s problem to solve, that is neither fair nor accurate. The responsibility for
addressing the needs of retired players belongs to all of us. The retired players, the
current players, the clubs, Gene as head of the Union, and I as the Commissioner – all of
us have a role to play. We will continue to address this issue in a way that is
Third, just as it would be wrong to say this is Gene Upshaw’s problem to solve, it
would be wrong to say that the NFL can or should solve the problem by itself. While
some may not believe this, the fact is that we cannot solve every problem of every type
that has been identified, and certainly not in a way that will satisfy everyone. NFL clubs
currently spend close to 60 percent of their gross revenues on player benefits and salaries.
Our clubs contributed almost $150 million last year to finance medical, disability, and
retirement benefits for former players, and during the term of our current collective
bargaining agreement, we project that our clubs will spend more than $700 million to
fund just this package of player benefits. Owners are responsibly addressing these
concerns, but they are simply not in a position to absorb significant incremental costs.
In meetings with Committee and personal staff, our office and the NFLPA have
provided you with a comprehensive summary of the benefits provided to retired players.
Those benefits have steadily improved over time, and among the benefits available to a
player who retires from the NFL today are all of the following:
A defined benefit pension plan with a benefit that is geared only to years of
service, not to the player’s earnings. If a player with ten years of service
begins to receive his pension at age 55, he receives $56,000 per year; if he
waits until age 65, he receives $147,000 per year. These amounts have grown
steadily, and pension benefits have been increased in each new collective
bargaining agreement over the past 15 years. For example, a player who
retired 25 years ago – in 1982 – and who begins to receive his pension at age
55 has seen his pension benefit credit more than double since he retired as a
considerably larger than the NFL – have terminated their pension plans or
turned them over to the federal pension guaranty board, we have both
negotiated steady increases in our benefits, and agreed to apply those
agreed to increase pension obligations by more than $200 million. In the last
virtually all of which has been for the benefit of retired players. I think
2:1 basis by the clubs up to $20,000 per year. Players have access to these
A lump sum severance benefit paid upon retirement from the NFL based on
We also, as the Committee knows, have a disability plan which offers a range of
benefits, including Total & Permanent, Football degenerative, and “Line of Duty”
benefits. We recently added another benefit, known as the “88 Plan,” which provides up
to $88,000 per year for former players suffering from dementia, without requiring proof
that the dementia is football related. For other categories of disability, the benefits range
from $18,000 per year to $224,000 per year, depending on the nature and severity of the
disability. These benefits are in addition to any state workers’ compensation. In
addition, not all disability benefits are based on a complete inability to work.
Benefits available under the disability plan have also grown substantially over the
past 15 years. An active player who qualifies for football-related Total & Permanent
disability has seen his annual benefit increase from $48,000 in 1993 to $224,000 today.
An active player whose Total & Permanent disability is not related to football has seen
his annual benefit grow to $134,000. And former players with football-related
“degenerative” disabilities have seen their annual benefit grow from $75,000 in 1993 to
$110,000 today, without regard to whether they are able to work. These are annual
Our disability plan has a number of features that make it unique and superior to
many other plans. I am told that most American workers have no employer-provided
disability benefits. A report released last month by the Labor Department showed that
barely 3 out of every 10 workers in the private sector have access to long term disability
coverage. In certain sectors of the economy that might be perceived as higher risk, the
The NFL Plan covers all players with at least three seasons of experience (four
years for players retiring before 1993) and provides for benefits even if the disability is
not football-related. With as few as three years of NFL experience, a former player can
receive benefits from the NFL disability plan even if his disability results from a car
accident, a fall at home, or some other everyday cause. Moreover, eligible players can
still apply for football degenerative benefits for up to 15 years after they retire from the
NFL.
The NFL Plan provides for payment of disability benefits on a retroactive basis,
so players are not prejudiced by delays in the application and administration process. A
player who is approved will receive benefits retroactive to his date of application. If the
disability precedes the application, the player can receive up to 42 months of benefits on
a retroactive basis. And, finally, NFL disability benefits are not offset by medical or
workers’ compensation payments, or any other NFL benefits, such as injury protection or
severance pay. As the Committee knows, the workers’ compensation system provides
lifetime medical and other benefits to players. NFL disability benefits are in addition to
commitment to providing fair and generous benefits to players and their families. And
the record bears that out – since 2000, we have paid more than $110 million to players
from the 1960s to the present who qualified for disability benefits.
Like you, I have heard concerns expressed about “red tape” and the complexity of
the application process. We have taken recent steps to address that problem, and I think
there is more we can do. One area of frustration is the Plan’s “Initial Claims Committee.”
This arises out of new regulations adopted by the Labor Department in 2002. At the time
these regulations were being considered, we filed comments with the Department noting
that these regulations would likely have the effect of slowing down decisions on
disability claims, and urged that they not be adopted. As we said at the time, because of
the sometimes complex nature of disability decisions, including the need to have medical
examinations completed by neutral physicians, and the reports analyzed within 45 days,
the new rules “will only force faster denials.” The requirements imposed by the Labor
Department have had the unintended consequence of making the application process
longer and more complex, as our people feared at the time they were proposed.
In the future, we can look more closely at how we decide which cases need to be
approved to continue their benefits, which rather strongly suggests that we may not need
to review and reconsider cases as often as we have in the past. We have begun that
process by reducing the frequency of medical re-evaluations from annually to once every
three years for players receiving Total & Permanent disability payments.
When decisions need to be reconsidered at the Board level, we will begin making
application is complete, or additional medical evaluations have been received, the Board
can consider and vote on the application by fax or email. This simple change will allow
Finally, we have tried to ensure that the standards by which disability claims are
evaluated are clear and understandable, and therefore more easily applied. As one
arising from football, are based on standards developed by the American Medical
Association. We also recently agreed to expand the standards for determining Total &
determination of the Social Security Administration will govern the former player’s
medical eligibility for NFL disability benefits. Our retirees have my personal
commitment to continue the effort to identify and implement any reasonable procedural
changes that would allow disability determinations to be made more quickly and reliably.
To that end, we have enlisted the assistance of independent counsel and benefit
This does not mean that every person who seeks disability benefits will, or
should, receive them. That needs to be understood by all parties. Disability benefits are
meant to assist people who cannot work, not simply that they can no longer play
employer, or by the Federal government, provides benefits to anyone who applies. And it
does not mean that, even if approved, every applicant will receive the amount he
requests. But we will continue to strive to do better, and to be seen as doing better.
I now want to address certain allegations about the manner in which decisions are
federal law and by regulations established by federal agencies. The Plan operates as
required under those regulations, including the use of an Initial Claims Committee,
neutral physicians, and the associated time limits. The people who make decisions act as
fiduciaries, who are obligated to follow the law and the terms of the Plan.
There are those who claim that disability applications are nonetheless denied as a
result of some sort of grand labor-management conspiracy. This claim assumes that an
the Plan Administrator, the neutral doctors, Plan counsel, and their various staffs – have
all agreed to deny benefits without regard to whether an applicant actually qualifies.
Those who adhere to this theory also dismiss that federal courts throughout the
country have upheld the Retirement Board’s decisions in 24 of the 25 cases that have
been litigated. The critics explain that away by saying that the standard of review is too
deferential, ignoring that the standard is set by federal law, not by the NFL, and is
But no matter how deferential the standard of review may be, no court would
defer to a decision tainted by collusion or conspiracy. The simple reality is that no such
claim has ever been proved and no court has ever made such a finding. These charges are
as cynical as they are unfounded, and the Committee should not dignify them here.
There is one other myth about decision-making that should be dispelled – that
being that many players are either denied benefits altogether, or forced to endure
extraordinary delay, because the Union and management trustees routinely divide 3-3 on
applications. There is no basis whatsoever for this suggestion. In fact, since the Initial
Claims Committee was put into place in 2002, it has deadlocked on only six claims in a
line-of-duty disability and only 32 cases of Total & Permanent Disability. Every other
claim filed – almost 600 claims – was decided unanimously, one way or another.
Where claims are appealed to the Retirement Board, the same is true. The Board
seldom splits in its votes. And even if there is a split in the Retirement Board, the case is
referred to a neutral physician, called the Medical Advisory Physician. That doctor’s
report is final and binding. That report decides the case – not the Union trustees or the
Management Trustees.
Apart from addressing the workings of the disability plan, we have recently
taken some additional steps to address specific needs of former players.
Earlier this year, we joined with the NFL Players’ Association, the NFL Alumni
Association, and the Pro Football Hall of Fame to establish an “Alliance” to bring
together the different groups seeking to help retired players. As a first step, we have
agreed to create a fund, set initially at $7 million, to fund two specific medical initiatives.
surgery and related rehabilitation for former players at a network of leading hospitals
Apart from these two programs, we are also exploring ways of providing support
for players in need of assisted living arrangements, and other specific medical needs.
Finally, we are expanding our outreach efforts to better identify former players
with special needs, so that our Alliance can provide financial assistance to those proud
former players and their families who are sometimes hesitant to ask for assistance.
addressing this issue – former players like Jerry Kramer or Hall of Famers Willie Lanier
and Merlin Olsen – have met with us and continue to do so. I am sure that together we
have the resources, creativity and determination to make a real difference in the lives of
There are today approximately 8000 active and retired NFL Players. Like many
groups of 8000 people, their circumstances vary widely. We are proud of the
comprehensive and improving package of benefits provided to players, and we will
Thank you for the opportunity to testify before your Committee today.