Why NFL Players and Teams Consider Injury Settlements

Pittman Injury Settlement

As the Ravens patiently wait to see if Jameel McClain will be medically cleared to return to the practice field, a potential injury settlement with the Ravens linebacker has to at least be in the back of Ozzie Newsome’s thoughts and perhaps the notion is working its way to the front of the GM’s cerebral cortex.

To help explain why teams and players sometimes agree on such a settlement, I offer up this from our own Brian McFarland’s 24×7 NFL Glossary. ~ Tony Lombardi

 

Injury Settlement – In the NFL, an injured player cannot be released. Often a team and player will reach an Injury Settlement in lieu of putting, or keeping, the player on IR for the rest of the season. Once an Injury Settlement is reached, the player is released. This is done when the player has a chance to recover from injury and play again in that season. However, if the player is still under contract for future seasons and the team wants to retain the player’s rights for the future, the team will not agree to an Injury Settlement and instead decide to continue to carry the player on Injured Reserve (IR).

An Injury Settlement is usually based on the amount of time that the team and player agree the player will be unable to play. So, for example, if the player is only expected to miss the first month of the season, the team and player will usually agree to a settlement of 4/17ths of the player’s scheduled base salary. The team then receives a Salary Cap credit of 13/17th of that salary. An Injury Settlement is attractive to both the team and player because it allows the team to create additional Salary Cap space and allows the player an opportunity to catch on with another team and not have to sit out the entire season on IR.

7 Raves on “Why NFL Players and Teams Consider Injury Settlements

  1. Why? on said:

    Why would the Ravens want to do this with Jameel? Isn’t he an important part of the defense as a returning veteran at the all-important ILB position?

  2. Juris Doctor G on said:

    I think you only do this if you sign Joe Mays or if Jameel just doesn’t look like he will play in the first half of the season.

  3. Tommy.O on said:

    I say we should do a settlement. He is Not a starter in my book. He is a good backup but he is not Ellerbe/Lewis/Smith

  4. Phil of Frostburg on said:

    The smartest player on the team is Damien Berry, who was lucky enough to have a minor injury before final cuts last year. He refused an injury settlement, collected a full NFL salary, and got to hang around the team and get his mug in the background of every picture and video during the SB run. He probably got playoff shares,too.

  5. Jeff on said:

    Assuming the injury settlement is paid to a player, what are the restrictions on re-signing that player by the team that came to the injury settlement?

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