The settlement will be seen as a positive outcome for the league, which, should the lawsuit have moved forward, was facing the potential of billions of dollars in liability payments and a lengthy and almost assuredly revealing discovery phase in which league officials and doctors would likely have been deposed. The settlement was not an admission by the league that it hid information on the long-term effects of head trauma from its players.

United States District Court Judge Anita B. Brody, from the Eastern District of Pennsylvania, said Thursday that she was informed by Layn Phillips, a court-appointed mediator, that the money would be used for medical exams, concussion-related compensation and a program of medical research for retired players and their families. The N.F.L. also agreed to pay legal fees for the plaintiffs’ lawyers. The money, which may not be dispersed for many months, will be available to all eligible retired players, not just the plaintiffs. The players will have an opportunity to opt out of the deal.

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