During a weekly (or, as some would say, weakly) Friday morning visit with our friends Nick Wright and John Lopez of 610 SportsRadio in Houston, Nick Wright posed an interesting question (for a change).
When it comes to the concussion settlement, should the Texans have to bear an equal share of the settlement burden, since the team has been in the league for only the last 10 years?
The basic numbers we’ve crunched regarding per-team burden — $3.9 million per year for three years after the settlement is finalized and $703,000 per year for the 17 years thereafter — assume an even distribution. As it turns out, our assumption was right (for a change).
NFL spokesman Brian McCarthy tells PFT that all teams will contribute equally to the overall fund.
It means that the final price tag, which will include an additional amount estimated by many to be $200 million for attorneys’ fees and up to $37.5 million more if the $675 million fund for players who can prove that they are injured dries up, will be split equally among all teams — from those that have been in the league since the 1920s to those that that existed for less than 20 years.
Is it fair? Probably not. But fans shouldn’t fret. Even at a total price tag of $1 billion, that’s a total payment of $31.25 million per team. To be paid out largely over an extended period of time, which drives the present value of the money down considerably.
For 32 billion-dollar businesses with billions more already guaranteed to be generated over the next decade through TV contracts, it’s a hiccup. A burp. A write-off.
Should teams like the Texans feel like they’re paying more than they should? Sure. Are they paying enough that owner Bob McNair should do anything more than shrug? Nope.