A federal bankruptcy judge has issued a ruling against former Colorado football player Shilo Sanders, denying a request by Sanders to dismiss a complaint against him from the trustee overseeing Sanders’ bankruptcy case.
The trustee had sued Sanders in October, two years after the son of Colorado coach Deion Sanders filed for bankruptcy in October 2023 in an effort to get out of more than $11 million in debt.
The trustee alleged Shilo Sanders had violated bankruptcy law by making unauthorized transfers of approximately $250,000. The suit sought to recover that money and more, which included Sanders’ college income from his name, image and likeness (NIL) through his businesses “Big 21” and “Headache Gang.”
In response, Sanders’ attorney said the trustee’s lawsuit was misguided and sought to have it dismissed. But Judge Michael Romero rejected Sanders’ arguments and is allowing the trustee’s lawsuit against Sanders to proceed toward a possible trial.
“The Court’s role in deciding the Motion to Dismiss is not to resolve factual disputes or weigh potential evidence outside the four corners of the Complaint,” Judge Michael Romero wrote in his ruling March 4. “The Trustee has otherwise sufficiently pled the necessary elements of his claims. He has also supported his claims with sufficient factual allegations regarding Sanders’ bank accounts, his NIL proceeds deposits into the Big 21 Account, and Sanders’ control over Big 21 and Headache Gang. Whether the evidence will ultimately substantiate the Trustee’s claims is a matter to be decided at trial.”
