NFLPA Math
We’re always astounded with the creative accounting that comes out of the NFLPA. Now that the 2008 LM-2 (see the earlier post and full LM-2 HERE) has been finally released, there’s going to be a lot of articles and commentary on what different people find when reading this 810-page tree killer. Daniel Kaplan and Liz Mullen from Sports Business Journal pointed out a couple of their favorite tidbits this morning (read the entire piece HERE). Among the gems in the Journal article was the fact that Gene Upshaw’s widow received her husband’s deferred compensation probably in excess of $10 million.
“The union attributed the $16.5 million decline, to $276.7 million, to a deferred compensation payout to late Executive Director Gene Upshaw’s estate and to soft apparel sales. The decline is disclosed in the union’s latest annual report, which was filed late last month with the Labor Department and covers the period of March 1, 2008, through Feb. 28, 2009.
“There was a deferred compensation held in trust for Gene Upshaw that was paid to his estate upon his death,” said NFLPA general counsel Richard Berthelsen. “Under these deferred compensation plans, the employer holds the deferred comp as an asset until it is paid out to the employee.”
Berthelsen would not provide further details about Upshaw’s deferred compensation but said it was “the lion’s share” of the decrease in assets. Upshaw died in August.”
Then there are the lawyers:
“According to the report, the union paid, its outside counsel, $9.9 million during the year. Some of that was for the firm’s work defending the union against a lawsuit from retired players seeking licensing money, a matter that included a five-week trial. The union has appealed the decision that was made in favor of the players.
Dewey & LeBoeuf has defended the union in other matters over the past year, as well, including the StarCaps litigation, the CBS Interactive litigation, and grievances involving players Michael Vick and Plaxico Burress.”
So the retired players won $26.25 million in the announced settlement – likely to be paid out over a couple of years – and Upshaw’s widow got over $10 million immediately and Kessler’s law firm probably also got paid at least another $5 million for the class action trial. Interesting how the NFLPA can find a way to pay some people quicker than others.
And it looks like their insurer paid off some of their class action legal costs (page 43):
“The union also received a $5.5 million insurance payment from AIG in the past year, according to the LM-2. Berthelsen called it “a payment of insurance policy covering us for litigation,” but he declined further specific comment, saying cases are pending.”
And here’s one more from our own late night reading: On Page 65 of the same section as the AIG payout, there’s a line item under Eugene Upshaw Superbowl Tickets $24,000!
Conrad Dobler
June 9th, 2009 at 4:30 AM #
I read Brent Boyd’s story with interest about Palm Springs. What I found he left out was the fact that when his truck broke down the Union paid to get it fixed. (This is a report I received but as of now it’s just heresay.) If one is to report on the Union and we want it to be informed on all actions then anyone writing a story on the Union should give all the facts. If the Union did in fact pay for the repairs of Brent’s truck, that should have been reported by Brent.
Conrad Dobler
Dave Pear
June 9th, 2009 at 8:37 AM #
Fellow Retired Players,
OK, talk is cheap. Upshaw has left the building. How about getting some ACTIVE players (hint: Drew Brees) to echo Smith’s comments and voice support for retired players?! To come out with some statements that – in addition to a new top dog – there need to be changes. Like getting rid of excess “baggage.”
Regards,
Dave & Heidi Pear
Kathy Smith
June 9th, 2009 at 5:02 PM #
The Union needs to help us. Good for Brent. It would be better if we could pay for it ourselves with our earned pension and disability benefits instead of making it look like a handout.
Kathy & Lucious Smith