The financial and legal troubles surrounding Shilo Sanders, the NFL free agent and son of football legend Deion Sanders, have intensified. The former University of Colorado safety, who recently filed for Chapter 7 bankruptcy, is now accused of making unauthorized money transfers worth a staggering $250,000. The core of the controversy lies in earnings from his college football Name, Image, and Likeness (NIL) agreements, raising serious questions about adherence to federal bankruptcy regulations.
Attorney Fights Back Against Trustee's Claims
The allegations have drawn sharp rebuttals from Sanders' legal team. His attorney, Keri Riley, has forcefully challenged the trustee's claims, labelling them as fundamentally incorrect. Riley argues that the funds in question were legitimately earned after Sanders filed for bankruptcy. According to her, the income was processed through Sanders' own companies, Big 21 LLC and Headache Gang LLC, and therefore should not be included in the bankruptcy estate available to creditors.
"The earnings were generated post-petition through modern NIL agreements, which are a separate revenue stream for today's college athletes," Riley emphasized, drawing a clear line between these funds and any pre-existing debts.
The Shadow of a Multi-Million Dollar Judgment
Complicating Sanders' financial picture is a long-standing legal burden. The bankruptcy filing was initially pursued to manage a massive liability stemming from a 2015 lawsuit. A former high school security guard in Dallas alleged that Sanders caused him injury during an incident. The court awarded a default judgment of nearly $12 million against Sanders, a debt that has loomed over him for years.
While the Chapter 7 filing was intended to address this and other liabilities, the new allegations regarding the NIL transfers have created a significant hurdle in his path to financial resolution. The bankruptcy trustee contends that Sanders improperly moved funds after his petition, a potential violation of rules designed to protect creditors.
NFL Career in Limbo Amid Legal Scrutiny
Despite these off-field challenges, Shilo Sanders pursued his professional football dreams. He briefly joined the Tampa Bay Buccaneers as an undrafted free agent earlier this year. Reports indicate he inked a three-year contract valued at approximately $2.97 million. However, his time with the team was short-lived; he was released during the preseason, ultimately earning only $1,572 in guaranteed money from the deal.
His future in the NFL now appears uncertain, clouded by both legal proceedings and questions about his financial management. The case is being closely watched as it sits at the complex intersection of established bankruptcy law and the new, evolving world of NIL earnings for athletes.
The outcome could establish an important legal precedent for how income from name, image, and likeness deals is treated when an athlete declares bankruptcy. With Sanders' attorney vigorously disputing the trustee's claims, the court's decision will clarify whether such post-filing NIL revenue is protected or must be surrendered to settle debts.
