• Loading stock data...
Tuesday, February 17, 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

Ryan Field

What’s Behind Midseason Opening of Northwestern’s New $862M Stadium 

The Wildcats will play their first game at Ryan Field on Oct. 2.

Kansas State Tries to Use Rant to Avoid Paying Coach $18M Buyout

Tang’s contract says he’s entitled to a $18.7 million buyout.
Sep 16, 2023; Stanford, California, USA; Sacramento State Hornets running back Elijah Tau-Tolliver (25) celebrates after a touchdown during the fourth quarter against the Stanford Cardinal at Stanford Stadium

Sacramento State Will Pay $20M+ to Join MAC in FBS

The Hornets have been pushing hard for an FBS invitation.

NFL Wins Ruling to End Public Release of Team Report Cards

Player rankings of team facilities and personnel will no longer be made public.

Featured Today

Max Valverde by Ron Winsett

How Ski Mountaineering’s Hype Man Went From TikTok to NBC

Max Valverde’s gushing over the niche sport vaulted him to Olympic broadcaster.
Feb 11, 2026; Livigno, Italy; Jaelin Kauf of the United States during freestyle skiing women's moguls final during the Milano Cortina 2026 Olympic Winter Games at Livigno Aerials & Moguls Park
February 13, 2026

The Surprise Hit of the Winter Olympics: First-Person Drone Views

Tiny drone cameras have reshaped the Olympics viewing experience.
Feb 11, 2026; Milan, Italy; Madison Chock and Evan Bates of the United States skate during the Milano Cortina 2026 Olympic Winter Games at Milano Ice Skating Arena.
February 13, 2026

Olympic Figure Skaters Pay Out of Pocket for $9,000 Costumes

For four minutes on ice, stakes are high—and prices even higher.
February 11, 2026

Epstein Emails Show His F1 Ties Ran Deep

The sex trafficker’s circles included many of the biggest names in F1.
exclusive
February 4, 2026

Chicago Sky ‘Self-Dealing’ Suit Is Reminder of WNBA’s Painful Past

A minority investor sued team co-founder Michael Alter last week.
February 11, 2026

How Olympic Figure Skating Music Ended Up in a Copyright Quagmire

Copyright issues are causing chaos for several skaters in Milan.
Sponsored

From MLS to AUSL: Jon Patricof on Building Sports Leagues

Jon Patricof on athlete equity, fan-first strategy, and how women’s sports can reshape the future of league building.
A view of a Nike retail store in New York City.
February 4, 2026

Feds Probing Nike for ‘Systemic’ Discrimination Against White Workers

“This feels like a surprising and unusual escalation,” Nike said.
Sep 26, 2025; San Diego, California, USA; San Diego Padres right fielder Fernando Tatis Jr. (23) hits a grand slam home run during the fourth inning Arizona Diamondbacks at Petco Park
February 4, 2026

Padres Sale Looms After Seidler Family Resolves Lawsuit

Sheel Seidler dropped most of the claims against two of her brothers.
Demonstrators rally outside of the Supreme Court as the justices hear oral arguments in two cases related to transgender athlete participation in sports in Washington, DC, on Jan. 13, 2026. The cases, Little v. Hecox and West Virginia v. B.P.J., seek to decide whether laws that limit participation to women and girls based on sex violate the equal protection clause of the 14th Amendment.
January 30, 2026

The Former D-I Soccer Player Turned Lawyer Taking On Trans Athlete Cases

“There’s not that many people doing it.”
January 29, 2026

Court Deals Major Blow to Retired Players in Disability Suit Against NFL

A federal judge denied the retired NFL players a class certification.