NFL, Former Players Reach $765 Million Settlement on Concussion-Related Lawsuits

The agreement, which came as a surprise, calls for the league to pay $765 million for medical benefits and injury compensation for the retired players as well as funding for medical research and litigation expenses. The settlement is for all retired players who present medical evidence of severe cognitive impairment, not just the ones in the suit.

"Rather than litigate literally thousands of complex individual claims over many years, the parties have reached an agreement that, if approved, will provide relief and support where it is needed at a time when it is most needed," said mediator Layn Phillips, a former U.S. District judge, who announced the settlement.

The agreement must be approved by Anita Brody, the federal judge in Philadelphia overseeing the case. A person familiar with the matter said the agreement should be approved.

NFL executive vice president Jeffrey Pash, who has spearheaded the case for the league, said Commissioner Roger Goodell and every owner gave the legal team the same direction: to "do the right thing" for former players.

"This is an important step that builds on the significant changes we've made in recent years to make the game safer, and we will continue our work to better the long-term health and well-being of NFL players," Mr. Pash said.

The deal calls for baseline medical testing for retired players who are seeking the benefits. If a retired player's condition worsens, the deal says, he may apply for a supplemental payment. The individual medical cases will be decided by independent doctors appointed by the district court. The deal also doesn't represent the NFL acknowledging liability for the head injuries.

The retired players don't have to approve the settlement but anyone can opt out, a league spokesman said.

Lead plaintiffs attorney Christopher Seeger said the agreement will "get help quickly to the men who suffered neurological injuries. It will do so faster and at far less cost, both financially and emotionally, than could have ever been accomplished by continuing to litigate."

Gabe Feldman, who leads the sports-law program at the Tulane University, said the timing of the settlement is a surprise, since it comes before there have been any significant legal rulings or discovery.

"This is early," Mr. Feldman said. "That's an indication that either one or both sides might not have felt so strongly about their case."

For the NFL, settling the case removes a major question about the future viability of the league. It also comes one week before the start of the regular season and amid continuing discussion about the dangers associated with playing. "There was a lot of potential damage for the NFL if this dragged on," Mr. Feldman said.