• Loading stock data...
Monday, March 9, 2026
Law

Why Shilo Sanders’s NIL Deals Are an Issue in His Ongoing Bankruptcy

  • Shilo plays for his father, Deion Sanders, at Colorado. 
  • Lawyers believe Sanders is hiding NIL funds.
Candice Ward-USA TODAY Sports

In 2022, a court ruled that Colorado safety Shilo Sanders owed John Darjean more than $11 million in damages. Darjean, a security guard at Sanders’s Dallas-area high school, alleged that Sanders assaulted him in 2015—when the football player was just 15—badly injuring his back.

Sanders and his father, Colorado football coach Deion Sanders, have denied the allegations, accusing Darjean of instigating the incident. But the enormous judgment against him led him to declare bankruptcy last year. Sanders’s lawyers said at the time that he wanted to “get a fresh start, free from the oppressive burden of his debts,” which are almost entirely owed to Darjean.

Now, the bankruptcy case pursuing Sanders’s assets says the safety is not being fully honest about his income—assets that would go to Darjean as the primary creditor in the bankruptcy case.

On Tuesday, the judge overseeing the case approved a request to hire a special counsel after reaching an “impasse” with Sanders’s legal team over his income from name, image, and likeness deals. USA Today first reported the legal move.

The request of a special counsel, which was filed Monday but approved Tuesday, is the latest attempt for the trustees to accumulate Sanders’s assets to sell off. 

Sanders has a large array of NIL deals, but the bankruptcy trustee says he hasn’t been transparent about them in the case.

“While the Debtor has provided the Trustee with certain NILs, the Trustee needs to confirm he has received all of the NILs and has full information of the use of revenue generated by the NILs,” read the request for the special counsel.

Lawyers for Darjean say Sanders has used LLCs to hide some of his NIL income, according to USA Today. Deals with Oikos and KFC—companies that Sanders has appeared in ads for—were not included in the $193,713 in 2023 income Sanders declared in the case, according to Darjean’s lawyers.

Sanders and his father did not publicly comment on the filing until earlier this summer, and they brushed it off when they finally did so. “Shilo’s good,” the elder Sanders told USA Today last month. “You know what I want you to do? I want you to do this for me: I want you to do your homework and do a whole investigation on that and then write that. I mean the whole complete investigation on what truly happened.”

Sanders, now 24, is a graduate student in his final season of eligibility.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

NFL Teams Armed With Record Cap Space Set to Enter Free Agency

An elevated salary cap and available talent will fuel robust spending.
White House Trump college sports roundtable

Trump Says He’ll Issue Second Executive Order on College Sports

“The executive order is going to let colleges survive and players survive.”
Dec 18, 2011; Orchard Park, NY, USA; Miami Dolphins running back Reggie Bush (22) runs for a touchdown against the Buffalo Bills during the second half at Ralph Wilson Stadium.

Reggie Bush Says NIL Era Wouldn’t Have Happened Without His Saga

The former USC running back had his Heisman Trophy revoked for 14 years.
Jan 18, 2026; Melbourne, Victoria, Australia; Michael Zheng of United States in action against Sebastian Korda of United States in the first round of the men’s singles at the Australian Open at Kia Arena in Melbourne Park. Mandatory Credit:

Columbia Tennis Star Says He Claimed $150K from Australian Open

It was unclear if he could do so under NCAA rules.

Featured Today

Alex Eala Has Become One of the Biggest Draws in Tennis

Eala will face Coco Gauff in the third round at Indian Wells.
Jun 9, 2021; Paris, France; The racket of Coco Gauff (USA) after she smashed it during her match against Barbora Krejcikova (CZE) on day 11 of the French Open at Stade Roland Garros
March 6, 2026

The ‘Rage Room’ Is the Hottest Place in Tennis

The idea came from a player podcast.
March 5, 2026

Mark DeRosa Is Still Baseball’s Swiss Army Knife

DeRosa is the sport’s utility player both on the field and off.
Nicole Silveira
March 3, 2026

The Tattoo Marking Membership in the Most Exclusive Club in Sports

For athletes, the Olympic rings tattoo is “about everything it took.”

Creditors Bash Grand Slam Track, Threaten to Sue: ‘Shocking Levels of Incompetence’

A new legal filing criticizes the league’s plan to emerge from bankruptcy.
Oct 16, 2025; Salt Lake City, Utah, USA; Portland Trail Blazers head coach Chauncey Billups gives instructions to his team during the first half against the Utah Jazz at Delta Center. Mandatory Credit: Peter Creveling-Imagn Images
March 4, 2026

Judge Targets November Trial in Chauncey Billups Case

Billups was arrested in October as part of a federal gambling probe.
Mar 30, 2025; Minneapolis, Minnesota, USA; Detroit Pistons guard Malik Beasley (5) reacts during the second quarter against the Minnesota Timberwolves at Target Center. Mandatory Credit: Matt Krohn-Imagn Images
March 6, 2026

Judge Rules Malik Beasley Owes $1 Million to Former Agency

The free-agent guard remains a subject in a federal gambling probe.
Sponsored

From USWNT Star to NWSL Franchise Founder

Leslie Osborne, former USWNT midfielder, shares how athletes are moving from the pitch to the ownership table.
A Reebok garment display is seen at a Walmart Supercenter on W. Greenfield Ave. on Thursday November 20, 2025 in West Milwaukee, Wisconsin.
March 3, 2026

Reebok, On, and Other Sports Retailers Demand Tariff Refunds

Reversing tariffs will generate up to $175B in refunds, says one group.
Sep 15, 2024; Arlington, Texas, USA; Boxer Mike Tyson on the field before the game between the Dallas Cowboys and New Orleans Saints at AT&T Stadium.
February 26, 2026

Mike Tyson’s Former Weed Biz Partners Countersue in Delaware 

They are concerned about the value of their shares in Tyson 2.0.
Feb 12, 2026; Los Angeles, California, USA; A Nike All Star 2026 display at Nike The Grove.
February 20, 2026

Sportswear Companies Big Winners of Trump’s Supreme Court Tariff Loss

The justices said the tariffs exceed the president’s “legitimate reach.”
Michael Rubin; Feb 18, 2024; Indianapolis, Indiana, USA; Fanatics owner Michael Rubin attends the 73rd NBA All Star game at Gainbridge Fieldhouse.
February 19, 2026

Inside Fanatics’s Battle to Block a Polymarket Hire

The two sides informed the court that they have reached a settlement.