Shilo Sanders' $11,000,000 Bankruptcy Case Takes Major Development as Coach Prime's Son's Lawyer Blasts Trustee Over 'Fundamentally Flawed' Claims

NFL free agent Shilo Sanders filed for Chapter 7 bankruptcy in October 2023 to address an $11 million default judgment against him following a 2015 incident with a former high school security guard at his high school in Dallas. In October of this year, the trustee handling Sanders' Chapter 7 bankruptcy filed a complaint alleging the former Colorado security violated bankruptcy law by making unauthorized transfers totaling about $250,000.

Earlier this week, Sanders' attorney, Keri Riley, responded to the allegations in a court filing essentially claiming that the trustee's allegations are fundamentally flawed.

The dispute revolves around the money Sanders earned from his name, image and likeness (NIL) deals while playing college football, after he filed for bankruptcy in October 2023. The earnings flowed through two companies established by Sanders: Big 21 LLC and Headache Gang LLC.

“All funds deposited and subsequently by the Big 21 post-petition were post-petition proceeds of the debtor,” Riley said in a statement. “The trustee acknowledges in the complaint that the debtor was making money from NIL Deals both before and after the petition.

“As alleged in the complaint, NIL offers were and continue to be the debtor's primary source of income. . . . Although the estate is entitled to 'income' or 'profits' from the estate's assets, the statute expressly excludes 'earnings from services performed by an individual debtor after the case has commenced.'

The guard, John Darjean, alleged that Sanders assaulted him in 2015, leaving him injured. Sanders failed to appear at trial and Darjean received a default judgment of $11.89 million, but the footballer still has to pay the sum.

READ ALSO: Shilo Sanders' $11 million bankruptcy case takes center stage amid uncertain Bucs future as creditor eyes repayment: report

Shilo is the eldest son of Deion Sanders and his second ex-wife, Pilar Sanders. His younger brother, Shedeur, plays as the starting quarterback for the Cleveland Browns, while his younger sister, Shelomi, plays college basketball at Alabama A&M.

A look at Shilo Sanders' contract with the Tampa Bay Buccaneers

The Tampa Bay Buccaneers signed Shiloh Sanders as an undrafted free agent this year. He signed a three-year, approximately $2.97 million contract.

However, Sanders reportedly earned $1,572 in guaranteed money from the Buccaneers since being released following the team's preseason.