Bills safety Damar Hamlin’s collapse during Monday Night Football has renewed calls for guaranteed contracts in the NFL and underscores longstanding gaps in the safety net that undergirds many of the players competing in the league.
Big-money contracts catch great attention, but the vast bulk of NFL players compete essentially on year-to-year contracts, with an average career of just over three seasons. It takes three campaigns for an NFL player to qualify for pension benefits, and a player must have competed for a minimum of three seasons before qualifying for the five years of post-retirement health insurance provided by the league. Hamlin, a sixth-round pick in his second season, is on a four-year, $3.6 million contract that is not guaranteed, like many NFL deals.
NFL executive vice president of football operations Troy Vincent, speaking to reporters earlier this week when asked about whether Hamlin is eligible for a pension, committed to taking care of the University of Pittsburgh alum in the future no matter if he is pension-eligible.
“Obviously in situations like this we expect, God willing, that he would recover,” Vincent said. “But he will — he would — get the resources necessary to make sure he has what he needs to live a complete life.”
The NFL, however, is under no legal obligation to do that.
Troy Vincent (Seth Wenig/Associated Press)
Depending on his recovery, Hamlin might be eligible for NFL disability programs and could file workers’ compensation claims if he is unable to resume his career. The NFL has faced litigation over denied disability claims, with resolutions going both in favor and against the league over the years.
The 2020 collective bargaining agreement includes a provision that sets annual payouts for total and permanent disability to $48,000. And in a controversial change that was later delayed until 2024, the league and union agreed to reduce disability payments if players receive similar checks from Social Security.
Asked in a press conference Thursday how much disability Hamlin might expect, NFLPA executive director DeMaurice Smith declined to comment. The NFL did not respond The Athletic’s request for comment.
Ray Genco, a lawyer who has brought disability claims against the NFL and NFLPA, wrote in an email, “Under the new CBA, total and permanent disabilities resulting from on-field injuries to active players have a minimum monthly benefit of $4,000 per month, with it increasing under certain conditions. This monthly benefit is described as for ‘life’ or ‘as long as the disability persists’… This payment comes with related medical expenses being paid by the plan, but those bills and treatment plans can be challenged and treatment often gets delayed for approval. “
Facing the prospect of modest disability payouts, some players seek to purchase supplemental insurance to cover the limitations of their NFL benefits and pay package.
“Here’s the problem with football: The guys who need (supplemental) insurance can’t afford it,” said Eugene Dorfman, president at Pro Players Insurance. “The guys that can afford it don’t really need it… So if you look at Hamlin, he’s a sixth-round draft pick. He makes what, $875,000 this year? OK, after taxes, he’s going to walk away with $500,000. That’s not a $500,000 lump sum. He’s getting $500,000 over 26 pay periods. And you’re asking him to buy a policy, let’s say a middle policy, a million-dollar career-ending injury, it’s going to cost him $10,000 (annually). He can’t afford that policy, he can’t.”
One NFL agent, who requested and was granted anonymity because of the sensitivity surrounding Hamlin’s medical status, said while one could not change the benefits rules, expect the Bills and the NFL to take care of Hamlin and his family.
“The NFL will take care of him, trust me on that one,” he said. “The bigger issue is there is, no way from a PR perspective that” they don’t help him. “Guarantee the Buffalo Bills will offer him a job.”
Hamlin’s tenuous future refreshed the issue of guaranteed contracts. There is no rule in the NFL against guaranteed contracts, but most are not, a topic often debated given the high risk of injury in the league. Hamlin still has $1.8 million remaining on his contract, but it’s not guaranteed. First- and second-round draft picks’ deals are guaranteed and a smattering of others have been, most famously DeShaun Watson’s five-year, $230 million contract with the Cleveland Browns.
But despite the violent nature of the sport, guaranteed contracts are not the norm. Partly that is due to a rule that owners must keep in reserve the amount of all contract guarantees, but the owners’ leverage in labor talks also allows them to maintain the status quo.
In response to Hamlin’s situation, former NFL running back Reggie Bush on Twitter this week decried the lack of protection players have in the NFL.
NFL Players need and deserve guaranteed contracts. There is a huge sacrifice placed on each player every time he steps on that field, and the fact that an owner can cut you at any given time and not pay you is crazy!!!
— Reggie Bush (@ReggieBush) January 3, 2023
Another NFL agent said, “There is absolutely no reason any professional football player should ever take the field ever again without a fully guaranteed contract for skill injury and death. That’s it. There is no logistical reason, there is no ethical reason and now the values of franchises are in the $10 billion range, there is no financial reason that you can’t give every single player in the National Football League a $1 million fully guaranteed contract. “
That agent requested and was granted anonymity because he blames the NFLPA for not pushing harder for guaranteed contracts and doesn’t want to alienate the group. The union in the past has found the issue a nonstarter with owners but recently brought a grievance against the NFL for allegedly colluding to ensure Watson’s guaranteed contract remains an exception.
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Because of the short duration of NFL players’ careers compared to other sports, the NFLPA more than most sports unions lacks the leverage to threaten a strike. Players with such short careers are not apt to sacrifice any time, leaving owners in a powerful position during labor talks.
So while the NFL says it will take care of Hamlin, many of his brothers may not have that afforded them. As a result, Rich Salgado, president of athlete insurance firm Coastal Advisors LLC, expects Hamlin’s situation to result in more players seeking risk policies.
“When I sat down with the guys, I explained to them that they have this option,” said Salgado, whose brother Jim is Hamlin’s position coach with the Bills. “You just have to pay for it.”
(Top photo: Kirk Irwin/Getty Images)
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