“Johnny Damon, earning $13 million this season, cannot pay his bills.” announces Fox Sports’ Ken Rosenthal. “Xavier Nady, earning $6.55 million, cannot purchase an apartment in New York.” The Allan Stanford scandal has already come to bear on cricket, and now, you can add a pair of prominent Scott Boras clients to the list of those whose assets have been frozen.
On Monday, the Securities and Exchange Commission froze all assets of three entities ” Stanford International Bank, Stanford Group Co., and Stanford Capital Management ” all managed by Robert Allen Stanford. Those were the only three entities whose assets were frozen, according to the SEC filing.
“I can’t pay bills right now,” Damon said at the Yankees’ spring training facility in Tampa. “That started on Tuesday. I had to pay a trainer for working out during the offseason. I told him, ‘Just hold on for a little bit and hopefully all this stuff gets resolved.'”
Nady faces similar concerns.
“I’m affected in some ways. I have the same (advisor) as Johnny,” Nady said. “He said I didn’t have money with Stanford (investments). But all my credit card accounts are frozen right now because of that situation. I’m trying to get an apartment in New York. I can’t put a credit card down to hold it.”
Damon, Nady and other Boras clients use Personal Management Consultants, a division of the Scott Boras Corporation, to monitor their assets.
Players pay PMC a percentage of their earnings on top of the commission they pay Boras. The company employs CPAs who check investments, audit teams, do tax work, and perform other services.
“I talked to PMC, talked to guys at Stanford Financial Group,” Damon said. “The first thing they kept saying was, ‘You should be OK.’ I was like, ‘Not should be OK.’ They clarified it that yeah, I’ve got nothing to worry about. But unfortunately, the money is frozen.”
PMC does not make actual investments, Boras said.
“We have no link to Stanford, no financial connection to any investment company with any of our clients,” Boras said. “We do not invest our clients’ money and receive no compensation for it, unlike other agencies.”