Bankruptcy Judge Weighs Privacy Concerns in Shilo Sanders’ Case
A federal bankruptcy judge has issued a limited protective order in the case of Colorado football player Shilo Sanders, son of head coach Deion Sanders, after expressing reservations about the extent of privacy being sought for Sanders’ financial activities. The case revolves around Sanders’ effort to discharge over $11 million in debt through bankruptcy proceedings, a move that has opened his financial life to public scrutiny.
Judge Michael E. Romero, presiding over the case in Denver, questioned why certain aspects of Sanders’ financial dealings, including business agreements and bank statements, should be shielded from public view. The judge even jokingly alluded to the possibility of someone being interested in knowing how often Sanders frequents McDonald’s, highlighting the absurdity of seeking privacy for such trivial details.
During a hearing, Judge Romero reminded Sanders’ attorney, Keri Riley, that Sanders voluntarily chose to file for bankruptcy in a public court, a decision that inherently involves transparency and disclosure of financial information. The judge questioned the rationale behind shielding Sanders’ bank statements from public view, particularly concerning mundane transactions like fast-food purchases.
"So you’re saying there’s a need for protection to find out how many times your client went to McDonald’s in 2023 − that it’s important that we protect the bank statements on that because it’s listed on his accounts?" the judge inquired.
Riley argued that the primary concern was preventing the dissemination of sensitive financial information on social media, which could potentially be used in a "smear campaign" against Sanders and negatively impact his future earnings.
"We at least want it to not end up on social media," Riley stated.
Judge Romero, however, questioned the significance of such information, stating, "Who cares how many times he goes to McDonald’s? There may be somebody interested… There may be somebody in this world who wants to know how many Big Macs he gets, but who cares?"
Sanders, a 25-year-old athlete with aspirations of being selected in the upcoming NFL draft, faces the potential impact of the bankruptcy case on his future earnings. The proceedings could significantly alter his financial prospects depending on the outcome.
Ultimately, Judge Romero determined that there was "good cause" to grant Sanders certain privacy protections. The five-page protective order issued by the judge restricts the use of designated discovery material to purposes directly related to the case.
The case centers on Sanders’ attempt to eliminate his debt, primarily owed to John Darjean, a former security guard at his school in Dallas. Darjean’s attorney, Ori Raphael, is vigorously contesting Sanders’ efforts to discharge the debt, arguing that Sanders should not receive "extra" privacy protection in a public bankruptcy court.
Raphael argued that any protective order should be "as narrow as possible" to ensure the case progresses efficiently.
"Nothing is special about what he’s done," Raphael asserted. "Nothing makes him unique. The only thing that’s unique is he’s chose to be bankrupt and come to this court to say, `Oh I’m special, so I shouldn’t have to reveal anything I’ve done.’ You chose this path. You have to therefore accept it. Same with the people who contracted with him. It’s the risk of doing business."
The protective order issued by the judge appears to prohibit the dissemination of designated discovery evidence on social media unless it becomes part of the public court record.
Sanders’ attorney emphasized the potential harm that could arise from the public exposure of his financial information.
"We don’t want a situation where we’re producing bank statements from 2023, and now we see an Instagram post saying, `Oh look. Four times last month, instead of paying (Darjean), he went to go and get avocado toast,’" Riley explained to the judge. "Does anybody care? We would hope not, but this is a case that is in the public sphere already."
The debt in question stems from a 2015 incident in which Sanders, then 15 years old, was accused of severely injuring Darjean while Darjean was attempting to confiscate his phone at school. Darjean subsequently filed a lawsuit against Sanders, culminating in a $11.89 million default judgment in a Dallas civil court in 2022. Sanders, who claimed self-defense, did not appear at the trial to defend himself, resulting in the judgment against him.
In response, Darjean has filed two complaints seeking to prevent the discharge of Sanders’ debt. The case has been bogged down in disputes over the appropriate level of privacy Sanders should be afforded in the public bankruptcy proceedings, particularly as discovery evidence concerning his finances is being gathered.
A fundamental aspect of bankruptcy proceedings is the requirement of public transparency to ensure fairness for creditors.
During the hearing, Judge Romero questioned the potential harm of posting discovery evidence on social media, stating that the court would not be influenced by public commentary on the case.
"Right, Your Honor, but it does impact this debtor’s ability to get his fresh start and continue to generate revenue down the road," Riley argued. "As somebody who does have at least somewhat of a public presence, when this content is created that is targeting him in a negative way… it’s doing nothing more than impacting his ability to get future deals."
Judge Romero’s protective order allows for discovery evidence to be designated "confidential" if the designating counsel believes in good faith that the information is proprietary, confidential, commercially sensitive, or would invade legitimate privacy interests. However, these designations can be challenged.
With the protective order in place, the case will now proceed toward trial. The stakes are considerable. If Darjean succeeds in preventing the discharge of Sanders’ debt, he could pursue collection of the full amount in the future. Conversely, if Sanders succeeds in having his debt discharged, Darjean is likely to recover only a small portion of what he is owed.
In the meantime, a bankruptcy trustee is attempting to gather Sanders’ non-exempt assets for sale and distribution among creditors. "We’re still trying to get all of those NIL contracts, Your Honor," said Peter Cal, attorney for the trustee.
