Sunday, August 23, 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.

This field is for validation purposes and should be left unchanged.

Sign up for
The Memo Newsletter

Get the biggest stories and best analysis on the business of sports delivered to your inbox twice every weekday and twice on weekends.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

‘Natural Next Step’: Brenda Song Takes Rams Fandom to Broadcast Booth

The actress has become an increasingly visible Rams ambassador.
Jan 18, 2024; Boulder, Colorado, USA; General view of a Fox Sports broadcast microphone before the game between the Oregon Ducks against the Colorado Buffaloes at the CU Events Center. Mandatory Credit: Ron Chenoy-USA TODAY Sports
Exclusive

Steven Ruiz Leaving The Ringer for Fox Sports

Ruiz had been with The Ringer since 2021.

Appeals Court Pauses Fifth Year of Eligibility Order

An appeals court has yet to make a final decision.
LSU Tigers head football coach Lane Kiffin talking with Quarterback Husan Longstreet 8 at LSU Football practice. August 18, 2026.

College Football Landscape Fueled by New Off-Field Drama

Five major storylines are shaping college football’s new business landscape.
podcast thumbnail mobile
Front Office Sports Today

8/21/26 – Jeanie Buss’s Ownership Battle, US Open’s Record Purse, Harden Hits $500M

0:00

Featured Today

Soccer Football - Premier League - Arsenal v Burnley - Emirates Stadium, London, Britain - May 18, 2026 Arsenal's Kai Havertz scores their first goal past Burnley's Max Weiss

Why the Premier League’s Star-Power Shortage Doesn’t Matter

The world’s richest soccer league doesn’t rely on big stars to dominate.
August 12, 2026

Trendy Golf Hat Divide Is More Than a Fashion Fight

As golf has gotten trendier, so has the sport’s style.
Joey Spallina of the Maryland Whipsnakes
August 6, 2026

How Eye Black Became ‘War Paint’ on the Field

“You’re going into battle, doing something you only do on game days.”
August 6, 2026

Tom Brady Explains His Aggressive Push Into Trading Cards

Brady talked to FOS about his eponymous card company.
FILE PHOTO: Cricket - Indian Premier League - IPL - Mumbai Indians v Chennai Super Kings - Wankhede Stadium, Mumbai, India - April 23, 2026 Mumbai Indians' Suryakumar Yadav in action
August 5, 2026

India Is Stealing Cricket’s Throne From England and Australia

India’s insatiable appetite for cricket has shifted the traditional locus of power.
Oct 19, 2024; Tucson, Arizona, USA; Colorado Buffalos head coach Deion Sanders against the Arizona Wildcats at Arizona Stadium. Mandatory Credit: Mark J. Rebilas-Imagn Images

Deion Sanders Facing Fraud Lawsuit Over ‘Prime’ Logo

A graphic designer is suing Sanders and multiple companies alleging false promises.
The Delaware Life logo is seen on a web browser in this illustration taken on August 17, 2026.
August 20, 2026

Mark Walter Has Been Here Before. What Happens Next?

“There’s fraud here,” one expert tells FOS.
Nov 6, 2023; Tuscaloosa, Alabama, USA; Alabama guard Kai Spears (32) a walk on guard, takes a three late in the game at Coleman Coliseum. Mandatory Credit: Gary Cosby Jr.-USA TODAY Sports
August 21, 2026

New York Times Loses $9.25M Defamation Verdict to Ex-Alabama Player

The outlet called the inaccurate report “an honest mistake.”
Sponsored

Saints Great Turns to Ownership

Marques Colston discusses his Champions Fund launch and finding success after football.
Golf - LIV Golf - United Kingdom - JCB Golf and Country Club, Uttoxeter, Britain - July 24, 2026 Crushers GC's Bryson DeChambeau in action as he hits a tee shot on the first hole during the second round
First at FOS
August 18, 2026

Production Company Sues LIV for $1.2M in Missed Payments

Fresh Tape managed logistics and on-site production for a LIV event in Florida.
August 14, 2026

MSG Gets Major Win in Ninth Year of Charles Oakley Legal Battle

A judge granted summary judgment in MSG’s favor.
August 14, 2026

Cubs, Nationals in Trademark Fight with WNBA Over ‘The W’

The baseball teams claim the league’s filing could cause “confusion.”
First at FOS
August 14, 2026

Panini Says Fanatics Cheated to Win NBA, NFL Card Deals

The allegations were made in a new court filing.