Shilo Sanders' $11,000,000 bankruptcy case takes major development as Coach Prime's son's attorney rips trustee over "fundamentally flawed" claims

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

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

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

“All of the funds paid into, and subsequently out of Big 21 post-petition were post-petition earnings of the Debtor,” Riley said in a statement. “The Trustee acknowledges in the Complaint that the Debtor was earning money from NIL Deals both pre- and post-petition.

"As alleged in the Complaint, the NIL Deals were and remain the Debtor’s primary source of income … While the estate is entitled to ‘proceeds’ or ‘profits’ from the assets of the estate, the law expressly excludes ‘earnings from services performed by an individual debtor after the commencement of the case.’”

The guard, John Darjean, alleged that Sanders assaulted him in 2015, leaving him with injuries. Sanders did not appear for the trial, and Darjean was awarded a default judgment of $11.89 million, but the football player has yet to pay the sum.

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

NFL: Former Tampa Bay Buccaneers safety Shilo Sanders - Source: Imagn

The Tampa Bay Buccaneers signed Shilo Sanders as an undrafted free agent this year. He inked a reported three-year, roughly $2.97 million contract.

However, Sanders reportedly earned $1,572 guaranteed money from the Buccaneers since he was released after the team's preseason.