Chairman Dorgan and Members of the Committee, I am Gene Upshaw, Executive Director of the NFL Players Association (“NFLPA”).  I appear today at the Committee’s invitation to discuss the benefits provided to players in the National Football League (“NFL”).   Prior to becoming Executive Director in 1983, I played 16 years in the National Football League.  I know the risks and rewards of the game.    

 

I am distressed when I hear about any former player who is hurting and in need.  Remember I played with a lot of these guys.  I have spent my entire professional career fighting for the rights of players.  I also recognize these are very emotional issues but we cannot overlook the facts.  The facts are the facts.  I ask permission to submit for the record our detailed “White Paper,” which describes the retirement, disability, health care, and other benefits currently available to NFL players.

 

Our benefits were forged in collective bargaining.  In 1993, as part of my first collective bargaining agreement as Executive Director, we dramatically improved both pension and disability benefits for all players.     

 

I want to make three simple points.

 

First, the NFLPA is proud of the job we have done for NFL Players both active and retired.  NFL Players are well compensated and enjoy an outstanding benefits package.  Unlike many businesses, where benefits have been reduced, benefits for NFL players have been maintained and repeatedly improved.  We represent the best practices of labor relations.

 

Second, we are not finished.  I think all of the active players  respect and empathize with the emotions and concerns expressed by retired players.  This is why we established a Retired Players organization as a division of the NFLPA in 1984.  And, in 1990, we established the Players Assistance Trust (PAT), funded by the active players to help former players in need.  In the past 18 months, this fund has disbursed over $1.5 million to former players in need of financial assistance.

 

When I became Executive Director in 1983, about 30% of NFL revenues went to the players.  That has now doubled, to 60% of all revenues.  Our union went through some dark times.  We had to renounce our union status – "decertify" – to bring the legal challenge that ultimately led to our present success.  I don't think any other union had ever done that; everyone said we were crazy.  But we made it work.  We shifted the battle from the picket line to the courtroom, and forged the partnership with the owners we are proud to have today.  With labor peace, the game has grown enormously, and all have benefited – players, owners, and fans.

 

This success has allowed us to win against the prevailing trend of reducing benefits to workers.  Before we get into the hype, let's look at the facts.   The NFLPA has fought hard to increase benefits -- especially pensions, disability, and health care. The charts behind me, and our more detailed White paper, speak the truth. 

 

Chart I shows in 1993, we reached back and included the “pre-59ers” for the first time in the Pension plan and reduced the vesting period.  These changes extended coverage to over 900 former players and their beneficiaries.  In each succeeding extension of the CBA in 1998, 2002 and 2006, the benefit credits for pension purposes of former players were increased.

 

Let’s turn to disability.  I want to begin by emphasizing that the Players Association, its members, staff and me personally, are sensitive to the medical, financial and emotional needs of professional football players – both retired and active.  We are distressed when a former player is in need, and we are committed to responding to the needs of all players.

 

But we reject charges that the present NFL Disability Benefit system treats veteran players harshly or denies them access to benefits. The factual record disproves those charges.  Of course, the system can be improved, and Commissioner Goodell and I are determined to simplify and expedite the processing of claims.

 

Chart II summarizes disability decisions from 1993, when the present disability categories were established, through June 2007.

Of the 1052 applicants for disability benefits since 1993, many were ineligible because they were not vested or were already receiving a pension.  Since 1993, 428 players, or 42.6% of those who applied, have received disability benefits. Forty eight cases are still pending, and there will be more approvals.  This compares to a 47% approval rate for Social Security disability.

 

Another recent disability benefit added by agreement between the NFLPA and NFL is the establishment this year of the “88 Plan”.  “88” was Hall of Fame John Mackey’s number and the plan is named in his honor.  It was negotiated and agreed to between Paul Tagliabue and myself during our 2006 CBA extension talks.  This benefit was extremely important to me and our union because of how much John Mackey meant to us.  He was the first President of the NFLPA after the merger of the old NFL Players Association with the American Football League Players Association in 1970.  John put his name on the line in a major antitrust suit which we won in the mid-70’s, and he has long been an inspiration to the officers and staff of the NFLPA.  I know John well and he is always in our thoughts as we continue to make improvements. 

 

Chart III shows  that since February of this year we have distributed 130 applications to players.  Of those applicants, we have received 79 back from players and 60 of the applications have been approved.  Of the remaining 19, only 4 have been denied and 15 are pending.

 

Commissioner Goodell and I do not decide disability claims.  Disability claims must first go  to a two-person Disability Initial Claims Committee (required by Department of Labor regulations since January 2002).  If the Committee deadlocks or a player is not satisfied with its decision, the player may appeal to the full Retirement Board.  The Board has six voting members; three appointed by the League and three appointed by the NFLPA.  The 3 members appointed by the NFLPA are retired players: Tom Condon, former President of the NFLPA, played 11 years in the NFL; Jeff Van Note, former President of the NFLPA, played 18 years for the Atlanta Falcons; and Dave Duerson, who played 11 years,  and was an All-Pro safety.  The NFL appointees are team owners William (Bill) Bidwell (Arizona Cardinals), Clark Hunt (Kansas City Chiefs) and Dick Cass (President, Baltimore Ravens).  If a player is dissatisfied with the Board’s decision, a player may seek review in federal court.

 

More recently the NFLPA/NFL formed an “Alliance” bringing together an initial $7 million fund to pay for joint replacement surgery and address other financial hardships of retired players.  The joint replacement surgeries will be available at no cost to retired players without insurance at designated hospitals across the country.

 

All of these benefits and improvements are paid for by the active players. 

 

Chart IV shows what the current players give up to help those who came before them.  Our CBA allocates a fixed percentage of Total NFL revenues for player salaries and benefits.  As you can see, last year alone the current players voluntarily gave up $147.5 million to help former players.  None of this $147.5 million went to current players.

 

That's $96.5 million to fund pensions, $20 million to fund disability benefits, and $31 million to fund medical benefits.  Just for former players.  And these numbers are growing.  Because of the pension increases in the 2006 CBA, the cost of funding pensions alone for former players more than doubled --from $39 million to $96.5 million -- a 147% increase in one year.

 

In the process each active player essentially reduced his salary by $82,000.

 

My third point is that Congress can help.  I have three suggestions for legislative action. 

 

First, we need federal standards for workers compensation.  The current state-by-state system often causes the vast majority of hurt workers, not just NFL players, to settle for a lump sum, and give up their rights to lifetime medical care for their injuries on the job.  Congress should impose federal standards that allow injured workers to get immediate medical help and keep lifetime coverage.

 

Second, Federal law does not allow unions to manage their own plans, even when, as here, the negotiated contribution by employers is fixed and plan actions cannot impose extra liability.  By proposing this I do not suggest that any of the six trustees have not acted in good faith and in accordance with their fiduciary duty.  But since the NFLPA has been criticized when applications are denied (even though a majority vote of the six trustees is necessary for a decision), and since current players are funding the system, it makes sense for the players to be the ones making the disability decisions. 

 

Third, in 2002, the Department of Labor imposed an extra level of decision-making in disability decisions – a new Initial Claims Committee – before our six trustees can hear the evidence about a particular player’s disability.  I ask Congress to eliminate this requirement.  I opposed the creation of this extra committee when the Department of Labor proposed it.

 

After 16 years as a player in the NFL and another 24 years as NFLPA Executive Director, be assured that no one cares more than I do about the disability issues and other facing my fellow players.  We have made great progress and we are not finished.  Congress can help.

I welcome any questions the Committee may wish to ask and will do my best to answer them.