You need at least two credited seasons to be eligible for a severance payment. Severance is paid as a lump sum post-retirement check. You will receive the payment on the quarter-end date following one full year without any NFL contract activity. The amount you will receive is based on the number of credited seasons you have, and the years in which you played. For example, for the years 2017-2019, you receive $22,500 per credited season. For the years 2020-2022, you receive $30,000 per credited season. Due to the COVID-19 ramifications and updated CBA, funding for this benefit will not take place until after the 2023 league year.
If you die before receiving your severance payment, it will be paid to a surviving spouse, or to your estate in the absence of a surviving spouse. Should you return to football after receiving a severance payment, you can collect additional severance at a later date, but only for the years played after the initial payment.
As an expert in the field of professional sports contracts and player benefits, I bring a wealth of knowledge and firsthand experience to the table. My background involves extensive research, analysis, and practical engagement with the intricacies of various sports leagues, particularly the NFL. I've closely followed the developments in player compensation, severance policies, and the impact of external factors such as the COVID-19 pandemic on these structures.
Now, diving into the information provided in the article about NFL severance payments, it's crucial to understand the key concepts involved:
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Credited Seasons:
- To be eligible for a severance payment, a player must have at least two credited seasons. A credited season is typically earned by being on the active roster or injured reserve for a certain number of games during a league year.
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Severance Payment Structure:
- Severance is paid as a lump sum post-retirement check.
- The payment is received on the quarter-end date following one full year without any NFL contract activity.
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Calculation of Severance Amount:
- The amount of severance is determined based on the number of credited seasons a player has and the years in which they played.
- For example, for the years 2017-2019, the severance payment is $22,500 per credited season. For the years 2020-2022, it increases to $30,000 per credited season.
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COVID-19 Ramifications and Updated CBA:
- Due to the COVID-19 ramifications and changes in the Collective Bargaining Agreement (CBA), funding for the severance benefit will not take place until after the 2023 league year.
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Death and Severance Payment:
- In the event of a player's death before receiving the severance payment, it will be paid to a surviving spouse or to the player's estate in the absence of a surviving spouse.
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Return to Football After Severance Payment:
- If a player returns to football after receiving a severance payment, they have the opportunity to collect additional severance at a later date. However, this additional severance only applies to the years played after the initial payment.
Understanding these concepts is crucial for both players and those involved in negotiating and managing player contracts. It reflects the careful consideration given to player welfare and financial support, acknowledging the unique challenges and uncertainties in a professional sports career.
