SBD/Issue 108/Sports & Society

Several MLB Players Have Money Tied Up With Stanford Financial

Nady (l) And Damon (r) Say Their
Finances Are Frozen Due To SFG
Yankees LFs Johnny Damon and Xavier Nady Friday said that "their finances are frozen because of money" they invested with the Stanford Financial Group (SFG), which is under SEC investigation for an alleged $8B fraud scheme, according to Ken Rosenthal of FOXSPORTS.com. MLB agent Scott Boras said that Damon and Nady, his clients, "have no reason to worry about losing money." Boras: "Our personal-management auditors have looked into the financial elements of it. None of our clients is in any financial jeopardy." Several Boras clients use Personal Management Consultants (PMC), a division of the Scott Boras Corp., to "monitor their assets," but Boras said that PMC "does not make actual investments." Boras: "We have no link to Stanford, no financial connection to any investment company with any of our clients. We do not invest our clients' money and receive no compensation for it" (FOXSPORTS.com, 2/20). Boras indicated that PMC was "monitoring the situation and making sure the ballplayers are taken care of." Boras: "We have taken steps to assure our clients will have their temporary needs met. We will provide them resources for the short term" (N.Y. DAILY NEWS, 2/21).  Fox Business’ Chris Cotter reported PMC handles day-to-day finances. Cotter: “So if you put a credit card down and that credit card gets denied, you don’t call Chase or you don’t American Express, you call PMC and you say, ‘What’s going on?’ They tell you, ‘Well, all the Stanford assets are frozen right now. Give it a couple of days and we’ll get back to you and we think everything will be alright’” (Fox Business, 2/20).

HIT BY THE PITCH: Orioles minor-league C Matt Wieters and P Jake Arrieta, also Boras clients, confirmed that they "have assets that might be affected" by SFG's troubles (Baltimore SUN, 2/22). Red Sox CF Jacoby Ellsbury said that he has a credit card associated with SFG that is "currently unusable." Ellsbury: "It just froze, everything just froze" (BOSTON GLOBE, 2/22). Mets P Mike Pelfrey said that 99% of his money is "tied up with" SFG. Pelfrey, whose money was invested by Boras, said that he is "using a 'little side account with Bank of America' just to pay his bills" (N.Y. POST, 2/21).

Peña Says Bulk Of His Assets Have Been
Frozen Due To SEC's Investigation
SAFE AT HOME: Rays 1B Carlos Peña yesterday said that the "bulk of his assets have been frozen" because of the SEC investigation of SFG, but "unlike some of the other major-leaguers involved, he has a separate account for his everyday living expenses." Peña: "It is an inconvenience, no doubt, but thankfully with the system I have set up I'll be fine." Peña said that he "didn't invest directly with the Stanford companies and they have no access to funds but serve as managers for his long-term investments" (ST. PETERSBURG TIMES, 2/23). Yankees 3B Alex Rodriguez said that he "'may have been (invested in) my first three years [in MLB]' with Stanford but he's not now." Rodriguez said that "'it's scary' what's happened to other players" (N.Y. POST, 2/22). NFL Giants QB Eli Manning, who visited with Stanford in Antigua in February '08, said it "was not a paid appearance, and I have no money invested with him" (N.Y. DAILY NEWS, 2/23).

UNION RAILROAD: In Manchester, Owen Gibson reports the England & Wales Cricket Board (ECB) is "considering legal action" against the Professional Cricketers' Association on the heels of reports ECB CEO David Collier wanted the union to "put pressure on" England cricket players to sign with SFG (Manchester GUARDIAN, 2/23).

UPDATE ON MEMPHIS TOURNEY: SFG is the title sponsor of the PGA Tour’s stop in Memphis, and PGA Tour Commissioner Tim Finchem said, “They’re really not doing any business, so we don’t know where that’s going to end and I can’t speculate on that because I don’t know. I do know that we have a very strong tournament in Memphis. We’re on a great golf course. We’ve got a great presenting sponsor in FedEx. That tournament is going to be played this year the week before the U.S. Open … and we’ll have to see what happens with Stanford in due course” ("PTI," ESPN, 2/20). 

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