Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Financial Struggles Common Among Professional Athletes
Author: Scarinci Hollenbeck, LLC
Date: January 29, 2014
Key Contacts
Back
Professional athletes are some of the youngest millionaires in the country, and many don’t know what to do with all the money from contracts.
For this reason, some put the trust of their finances in a financial adviser, which can lead to them being taken advantage of, or worse, defrauded.
One of the most popular cases in recent memory is former Heisman Trophy winner, Vince Young, who recently filed for bankruptcy. Part of the reason Young was forced to do this is the result of lawsuits stemming from a $1.8 million loan obtained from Pro Player Funding during the 2011 NFL lockout.
Young has been unable to pay back that money, and – including interest – he now owes $2.5 million. However, Young claims that his former financial adviser defrauded and conspired with Pro Player Funding to obtain the loan, which ne never received.
Important Pre-requisites of a Financial Adviser
This situation, and many others, bring up the discussion as to how athletes can be protected. The NFL Player’s Association recently issued strong guidelines for financial advisers that could help mitigate some of the problem.
The following are some of the requirements:
- A bachelor’s degree from an accredited university
- Minimum of eight years of licensed experience
- Minimum of $4 million of insurance coverage, through professional liability, errors & omission or a fidelity bond
- No civil, criminal or regulatory history related to fraud
- No ending customer complaints
- Must not maintain custody of player funds unless deemed a qualified custodian
Simply instituting these guidelines is a good first step to protect athletes, but there could be more moves in the future. For example, it will be interesting to see if future collective bargaining agreements come with requirements for professional sports leagues to provide financial literacy courses.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.