How Much Do Retired NFL Players Get Paid?

How much do NFL players get paid in retirement? It depends on a number of factors, including their length of service and whether they have a pension.

How Much Do Retired Players Get Paid?

The average NFL career lasts just over three years, so most players only have a few years to save for their post-playing days. The league has a pension plan that pays $1,000 per month for every year of service, but that’s only for players who have been in the league for at least three years. For those who don’t make it to three years, there’s not much.

Pensions

In 1993, the NFL established the Bert Bell/Pete Rozelle NFL Player Retirement Plan to provide income and medical benefits to retired players. The Plan is a qualified pension plan under section 401(a) of the Internal Revenue Code. Income benefits are based on a player’s length of service and career average salary. As of 2020, the maximum monthly income benefit is $3,500 for players with at least 11 years of service.

The Plan also provides medical benefits for eligible retirees and their dependents. The level of benefit depends on whether a retiree elects to participate in Medicare or enrolls in the plan’s own health insurance program. There are also death benefits available for eligible beneficiaries.

401K Plans

In general, DB pensions are much more favorable to the player than a 401k program. With a 401k, your benefits are based on the amount of contributions made to the program and investment performance. A DB pension plan, on the other hand, pays you a benefit that is calculated using a formula that takes into account your years of service and salary history. The vast majority of NFL players have their retirement savings in a DB pension plan.

Insurance

Insurance is a big part of post-playing life for NFL retirees. The league requires that every team take out a $100 million policy to cover any injuries that occur during play, and the policy is paid for by the league. The policy pays up to $5 million per player, and it is supplemented by an additional $10 million policy that the NFL has with Lloyd’s of London. This policy covers any career-ending injuries that happen to players.

How Much Do Active Players Get Paid?

Active players in the NFL earn an average of $2 million per year, but some earn much more. The highest-paid player in the NFL is currently Aaron Rodgers, who earns an annual salary of $33.5 million. Retired NFL players do not receive a salary, but they may receive benefits such as pension and health insurance.

Salary

The average NFL player salary in 2020 is $2 million per year, slightly down from the record average of $2.1 million set in 2019. The median salary for all players in 2020 is $860,000, which means that 50 percent of players receive more than this amount and 50 percent players receive less than this amount.

However, these figures can be misleading because they include all players, including those who are not active for the entire season or who are on reserve lists. When only active players are considered, the average salary rises to $2.7 million. The minimum salary for an NFL player in 2020 is $610,000 per year.

Bonuses

Players of the National Football League (NFL) receive plenty of money from their contracts, but they can also earn bonuses. Bonuses are additional payments that a player receives for achieving certain milestones or goals during the season or their career. For example, a player may receive a bonus for being selected to the Pro Bowl, or for being named the Most Valuable Player (MVP) of the league. Bonuses can also be given for achieving team goals, such as winning the Super Bowl. Players’ bonuses are typically paid out in lump sums, although some bonuses may be paid out in installments.

In addition to bonuses, NFL players also receive other forms of compensation, such as appearance fees and endorsement deals. These earnings are in addition to their salaries and bonuses, and can further increase their total annual income. For example, superstar quarterback Tom Brady reportedly earned $33 million from his salary, bonuses, and endorsements in 2017.

Endorsements

In addition to their salaries, active NFL players also receive a portion of the league’s revenue from things like television contracts, licensing agreements, and ticket sales. Players get a share of this “ pie” based on their playing time, Pro Bowl appearances, and other factors. The amount of money that players get from the league’s revenue sharing agreement has been increasing steadily in recent years and is now worth an estimated $27 million per team.

Players also receive money from endorsements. While endorsement deals are not nearly as lucrative as they are for NBA players or other professional athletes, some NFL stars do earn millions of dollars per year from these agreements. The most popular players can command high fees for appearing in commercials, endorsing products, or making personal appearances.

How Do NFL Players Get Paid?

NFL players get paid a lot of money. The average NFL player salary is $2.1 million per year, with a few players making over $30 million per year. But not all of that money is guaranteed. In fact, only about 47% of an NFL player’s contract is guaranteed.

Direct Deposit

Players receive their salaries through direct deposit. According to the NFL Players Association website, the organization “advises players to open checking and savings accounts with a financial institution of their choice and to arrange for regular direct deposit of their NFL player salary.”

Checks

Each fall, when the NFL regular season begins, so does a 17-week journey that will hopefully result in a spot in the playoffs. Players receive their base salary from their team over the course of these 17 weeks and are paid on a bi-weekly basis. Players also have the opportunity to earn per-game active roster bonuses and incentive clauses in their contracts. After the regular season ends, players on playoff teams will receive additional checks for each game they participate in during the postseason. The amount of those checks is predetermined by the collective bargaining agreement between the league and its players.

Debit Cards

Debit cards offer a convenient way for NFL players to access their money. Most debit cards are linked to a checking account and can be used to make purchases anywhere that credit cards are accepted. Some debit cards also offer rewards, such as cash back or points that can be redeemed for merchandise or travel.