The Colts are telling Luck to keep all $24.8 million, even though it is within their rights to reclaim it.
According to Schefter, the Colts reached a financial settlement with Luck late last week and told their former starter to keep the money, even though it is within their rights to reclaim it.
Luck would have owed the team $12.8 million as a pro-rated portion of the $32 million signing bonus he received in 2016 as a part of his five-year extension. He also would have owed another $12 million in roster bonuses he was paid in March.
"It's a tough thing, look it, he's leaving $450 million on the table potentially," Irsay said during Saturday night's news conference. "I mean, a half a billion dollars, and he's saying, 'You know what, I want to have my integrity. I have to be able to look T.Y. (Hilton) in the eye, look my teammates, look coach, look Chris (Ballard) and say, I'm all in,' and he just didn't feel he could do that."
Luck, 29, was set to enter his eighth season with the Colts, who selected him with the No. 1 overall pick of the 2012 draft out of Stanford. He led the Colts to the playoffs in his first three seasons, including the 2014 AFC Championship Game. A shoulder injury in Week 3 of the 2015 season was the first of a long list of ailments Luck has suffered since, which includes a torn cartilage in two ribs and a lacerated kidney.
Luck missed the entire 2017 season while dealing with a shoulder injury before rebounding with a fourth Pro Bowl year in 2018, throwing for 4,593 yards and 39 touchdowns while leading the Colts back to the playoffs.
Currently battling a high left ankle injury that was first diagnosed as a calf strain, Luck ultimately decided to make "the hardest decision of my life," announcing his retirement in an emotional press conference Saturday night.
"I’ve been stuck in this process," Luck said. "I haven’t been able to live the life I want to live. It’s taken the joy out of this game. After 2016 when I played in pain, and wasn’t regularly able to practice, I made a vow I wouldn’t go down that path again. The only way forward is to remove myself from this cycle. I came to the proverbial fork in the road, and made a vow if I ever did again I would choose me, in a sense."
Luck had three years and $64 million left on his current deal.
Backup quarterback Jacoby Brissett is set to start for the Colts' season opener against the Chargers on Sept. 8.