What distinguishes termination pay during the season from severance pay?

Termination pay and severance pay are distinguished primarily by the structure and timing of their payments. Termination pay is typically calculated based on the player's weekly salary and is paid in accordance with the remaining duration of their contract for that season. This means that if a player is terminated during the season, they may receive a certain amount of pay that compensates them for the weeks remaining on their contract.

On the other hand, severance pay is generally a one-time lump sum payment. It is intended to provide financial support to a player after their contract has been officially ended, which may include conditions such as the player being released or not being re-signed. The one-time nature of severance pay contrasts with the ongoing compensation structure inherent in termination pay.

These differences highlight why the correct distinction emphasizes that severance pay is structured as a lump sum, while termination pay is calculated based on the weekly rate of the player's contract. This understanding is crucial for agents and players navigating the complexities of contract negotiations and financial planning within the NFL landscape.