A serious sports injury can affect far more than your ability to train or compete. For many people, it can also disrupt their income – sometimes permanently.

The purpose of a loss of earnings claim is straightforward: to place the injured person, as far as possible, in the financial position they would have been in had the injury not happened. It is not about over-compensation, but about fairness and long-term security where someone’s working life has been altered through no fault of their own.

Loss of earnings is assessed by comparing what a person would reasonably have earned without the injury against what they are now able to earn.

Calculating past loss of earnings

Past loss of earnings looks at income already lost as a result of the injury.

Typically, this is based on average net earnings in the three to six months before the accident. Evidence such as payslips or bank statements is used to ensure calculations are accurate and transparent.

This figure is then compared with income received after the injury. The difference represents the financial loss. In some cases, this may also include missed bonuses, commission, or regular overtime where these formed a consistent part of earnings.

Calculating future loss of earnings

Future loss of earnings is often the most complex part of a claim, particularly where an injury has long-term or career-ending consequences.

Courts rely on established actuarial guidance, including the Ogden Tables, which take into account factors such as:

• Life expectancy
• Inflation and interest rates
• Employment prospects
• The impact of disability or reduced capacity for work

These tools help ensure that compensation reflects realistic future losses and recognises that a single settlement is often intended to cover many years ahead.

Future losses are usually calculated using the multiplicand and multiplier method:

• Multiplicand – the net annual income likely to be lost because of the injury, based on evidence of earnings before and after the injury. For athletes, this may include career progression data and industry comparisons.
• Multiplier – the number of years the loss is expected to continue, adjusted for factors such as age, life expectancy and economic conditions.
• Expert evidence – medical and occupational experts provide opinions on prognosis, retraining options and long-term work capacity, ensuring figures are grounded in evidence rather than speculation.

Career loss and missed opportunities

Sometimes, pre-injury earnings don’t reflect true career potential. This can be particularly relevant for athletes or individuals on a clear progression path.

In these cases, future losses may be supported by:

• Performance reviews and appraisals
• Employment records
• Statements from colleagues or coaches

Courts may apply a “loss of chance” percentage to reflect the uncertainty of achieving every promotion or opportunity. This ensures claims remain realistic and proportionate.

Considerations for professional athletes

Professional athletes face unique challenges when injured, and their claims often require specialist input.

Losses may include:

• Loss of congenial employment – recognising the loss of a fulfilling career, not just income
• Lost earnings during a sporting career – up to the point the athlete would reasonably have retired
• Post-retirement earnings – where injury affects future work beyond sport

These assessments are careful, evidence-based and tailored to the individual’s career trajectory.

Disadvantage in the labour market

Some injuries place individuals at a disadvantage when competing for work in the future. This is acknowledged through the Smith v Manchester award, which reflects reduced job security and increased difficulty finding equivalent employment.

Awards are typically modest and proportionate, often equivalent to three or four years’ net earnings and are designed to acknowledge ongoing vulnerability in the job market, not to overstate it.

A fair and balanced approach

At Switalskis, we are open about how compensation figures are calculated. Every claim is supported by evidence, expert opinion and established legal principles.

Loss of earnings awards are not about placing unnecessary strain on public services or organisations. They exist to ensure that people who have been injured through negligence are not left carrying long-term financial consequences alone.

If you’ve suffered a sports injury and are worried about how it may affect your future income, we’re here to talk through your situation clearly, honestly and with care.