Overview of Business Law and Ethics

Final Case Study

The National Football League and Brain Injuries

Team Members

Khadija Tahiri

Ramish Naim
1. Do you think that the NFL and franchise owners are meeting their obligations to
employee health and safety?

The NFL and franchise owners are not meeting their obligations to employee health and safety. They are
the primary caretakers of the players’ health, especially since the Occupational Safety and Health
Administration (OSHA) is also not as invested in protecting professional athletes as mentioned in the
article.

Firstly, considering the monetary aspect of the sport and the amount that the federation itself and the
franchise owners have been earning, they should design better agreements to protect the players from
health and safety issues both during and after their football careers. The NFL should lead this agreement
and bind the franchise owners in dedicating a proportionate amount of their income to health benefits.
They can achieve this by collecting a certain portion of every team’s net income so that a less profitable
team such as Buffalo Bills or Oakland Raiders does not bear a higher burden than a more profitable team
like Dallas Cowboys and New England Patriots (as per Exhibit 1 in the article). This will also indirectly
encourage the weaker teams to perform better in order to generate more revenue while contributing more
towards their players’ safety.

Moreover, the nature of the sport is such that it is more physically challenging and poses a threat to head
injuries with long-lasting impacts. As a result, the physical issues will be recurring and cannot be avoided
in the long run as experienced by many players post-retirement. Hence the NFL should also have more
welcoming policies to allow both former and current players to voice their concerns regarding their health,
and provide them with adequate resources to resolve these issues.

The franchise owners should also increase their involvement and investment in their players’ health. As
mentioned in the article, the medical consultants hired by the owners produced reports that were heavily
influenced by the NFL’s senior management and did not provide a clear picture of the players’ health.
Consequently, the owners should hire more skilled medical consultants who will provide unbiased
opinions on players’ health. Especially before, during, and after a game when players are prone to
additional injuries, the check-ups should be properly scheduled in order to address any issues before they
deteriorate further.

Finally, the article highlights that numerous players conceal their injuries due to concerns about job
security and their role within the team. This indicates a clear tendency among players to prioritize their
professional status over their personal health and well-being. The owners should include covenants in
their agreements that protect the players’ position in case of a health emergency. This will allow the
players to feel comfortable and be more open about their health issues without any concern for the
negative consequences attached to them.
2. Do you think that the NFL's and owners' responsibilities in terms of player safety and
health have changed now that the long-term health risks of playing football are more
widely understood?

Considering the sensitivity and longevity of the health issues which have been highlighted by various
institutions and former players, the responsibilities of the NFL and the owners have instead increased
rather than changed. The lawsuit of 2012 triggered a conversation on the players’ health and safety
management which was ignored by the authorities earlier.

According to the case, a series of events and research has brought attention to the issues related to the
sport: in late 2009, a spokesperson of the NFL shared reports from medical research that explained the
connection between concussions caused in the game and long-term head injuries. There were also
constant references to players suffering from chronic traumatic encephalopathy (CTE) by various
institutions. However, the most important instances were those involving players who committed suicide
and its connection with the injuries they sustained during their football career. These events were a clear
indication that the NFL and the owners’ responsibilities stretched beyond ensuring the players’ physical
health only and required a deeper intervention by the authorities to prevent the tragic after-effects of the
concussions and related head injuries.

The NFL’s actions following the lawsuit also represent their acknowledgment of the implications of the
players’ health issues, and how they hold more responsibility for countering them. Firstly, the NFL
respected their commitment towards the settlement of 2014’s lawsuit, allocating $765 Mn in health
benefits for the players. The NFL's investment in stronger equipment is another sign of ensuring that
players are protected health and safety-wise while keeping the thrill and authenticity of the sport as much
intact as possible.

Despite the authorities assuming more responsibilities and initiating steps to counter the aforementioned
issues, the NFL should ensure the effective implementation of some of its policies. To begin with, the NFL
must revise its post-lawsuit settlement policies to extend the benefits to a larger group of players.
Currently, only players below the age of 52 are eligible for claiming health benefits, which can only be
acquired until the age of 55. This significantly limits the number of players eligible for the benefits, even
though it is evident that the issue persists in all age groups. Consequently, the NFL should ease the
restrictions on the age eligibility of the players in order to cater to a larger number of players requiring
assistance.

Furthermore, the NFL’s investment in research and development is not sufficient especially when
compared to the monetary returns of the sport. The federation needs to invest more in the equipment,
and provide better incentives to attract talent/contractors for building reliable and resilient equipment for
the players.

To conclude, the various incidents involving player health, as well as the subsequent actions taken by the
NFL, demonstrate that the issues at hand are broader and more complex than initially perceived. As
such, the NFL's responsibilities extend beyond physical health to encompass longer-term and more
intricate mental health issues, particularly after players retire from the sport. A deeper involvement is
necessary to address these challenges effectively.
3. There are analogies in the case between football and smoking. Do you believe that in
25 years, the state of professional football will be similar to that of cigarette companies
today?

The case draws analogies between football and smoking to illustrate how attitudes toward risk and safety
can change over time as scientific evidence accumulates.

In the past, smoking was widely considered to be a harmless or even healthy activity, with cigarette
companies promoting their products as a way to relax and improve health. However, as scientific studies
began to link smoking with lung cancer and other health problems, public perception of smoking shifted.
Cigarette companies were eventually forced to acknowledge the risks of smoking and pay billions of
dollars in settlements to victims.

Similarly, as the case argues, football was once seen as a relatively safe activity, with players and fans
celebrating the physicality and toughness of the sport. However, as scientific evidence has linked football
with brain injuries and other health problems, attitudes have begun to shift. The NFL and franchise
owners have faced increasing scrutiny and criticism over their handling of player safety, and players
themselves have become more vocal about the risks they face.

Furthermore, as social media continues to expand and bring greater awareness to health concerns in
football, the football federation may face a similar predicament as the cigarette industry, with mounting
opposition from various stakeholders. The recent events involving Kaepernick have further highlighted the
political challenges within professional football, underscoring the need for the federation to adopt a
stronger and more supportive stance. A notable example is the way in which soccer seamlessly
integrated the "black lives matter" movement by having players kneel for 5 seconds before every match
following George Floyd's murder. Similarly, the football association must adopt a more empathetic
approach to addressing issues to ensure its long-term viability as a business, gaining the trust not only of
the players but also of the broader audience.

Currently, the advancements in the cigarette industry, including nicotine-free cigarettes, vaping devices,
nicotine gums, and patches, as well as those in football, such as improved helmets and knee pads, are
remarkable. Nonetheless, the adverse effects of smoking outweigh those of football, and the NFL can
utilize technological progress to enhance player safety and prevent long-term health problems. Failing to
take prompt action in this regard could result in a similar outcome as that of the cigarette industry.
4. If you were the owner of an NFL franchise team, would you look to sell your team, or
do you think the NFL will continue as a viable and profitable business?

As potential owners of an NFL franchise team, we would continue our ownership of our team as the NFL
is still a considerably profitable business. Firstly, despite various fluctuations in TV viewership and ratings,
as mentioned in the article, the NFL remained a lucrative business for both players and owners.
Additionally, the league generated approximately $14 billion in revenues in 2017, indicating a 7% year-on-
year growth. The impressive growth trajectory is projected to continue, with the industry forecasted to
generate $25 billion in revenues by 2027.

Furthermore, the NFL’s vast and loyal fan base is another compelling reason to invest in the industry.
Millions of Americans are devoted to watching games regularly. In addition, the NFL has a proven track
record of adaptation to changing market trends and consumer preferences by offering live streaming
options and interactive features to enhance the viewer experience for fans, for instance. This ability and
flexibility to evolve indicate a promising future for the NFL as a business.

Despite the persistent issues highlighted in the article, the sport of football has experienced tremendous
growth, attracting a wider audience and generating higher revenues. This is supported by two figures:
figure 1 illustrates the total revenue generated by the 32 NFL teams for the federation, which reached
approximately $17.2 billion in 2021, reflecting a 30.5% increase from 2017. Figure 2 depicts the individual
net worths of the top 11 NFL teams, enabling us to compare them with the net worths of teams in 2012 as
reported in the article. The statistics reveal that the net worth of the top three teams in 2022 ($20.4 billion)
is a staggering 257% higher on average than their net worth in 2012 ($5.4 billion, as per Exhibit 1 in the
article). In essence, despite the challenges and concerns that football faces, the sport has continued to
thrive and grow in popularity, with a significant increase in revenue and team net worth over the years.

Based on the data presented above, it is evident that the NFL industry has maintained its status as a
highly profitable business over the past decade, with positive forecasts for the future. From a business
standpoint, we are enthusiastic about the prospects of remaining involved in the industry and retaining
our ownership of a franchise team.
Figure 1: Total Revenue of all NFL Teams from 2001 to 2021

Source: Statista

Figure 2: Individual Revenue of Top 11 Teams in NFL

Source: visualcapitalist
 References

Gough, Christina. “NFL revenue 2021.” Statista, 2 January 2023,

https://www.statista.com/statistics/193457/total-league-revenue-of-the-nfl-since-2005/. Accessed

18 March 2023.

Lu, Marcus. “Ranked: The Most Valuable NFL Teams in 2022.” Visual Capitalist, 20 December

2022, https://www.visualcapitalist.com/cp/ranked-the-most-valuable-nfl-teams-in-2022/. Accessed

18 March 2023.