Ryan Clark was stunned by Andrew Luck's decision to retire and describes the battle Luck must have had with the decision. (1:36)

Despite the fact that they could have recouped $24.8 million from their former quarterback, the Indianapolis Colts have reached a financial settlement with Andrew Luck and will not take back any of the money they are owed, league sources told ESPN.

The Colts essentially are telling Luck to keep it all, even though it is within their rights to reclaim the money.

The settlement was reached late last week, according to a source familiar with the talks.

Luck, 29, could have owed the Colts $12.8 million as a prorated portion of the $32 million signing bonus the Colts gave him when he signed his five-year extension in 2016, and another $12 million in roster bonuses he was paid in March. But Indianapolis waived its right to recoup the money and is allowing Luck to keep it all, after the poundings he has taken and all he has given to the franchise. It is, in an official way, his parting gift.

Shortly after the news of Luck's retirement broke Saturday night, Colts owner Jim Irsay estimated Luck might be losing out on a half-billion dollars in potential NFL wages by retiring now.

"It's a tough thing. Look it, he's leaving $450 million on the table potentially," Irsay said. "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 [wide receiver] T.Y. [Hilton] in the eye. Look my teammates, look Coach, look [GM] Chris [Ballard] and say, "I'm all in,"' and he just didn't feel he could do that."