By Marc Isenberg
Another unfortunate alleged financial scandal was reported today. According to a Rocky Mountain News article, "The Denver Nuggets forward [Nene] has accused Joe Santos of failing to fulfill his duties as manager and personal assistant and to keep adequate financial records. He also has said Santos diverted funds for personal use."
Nene learned in January 2006 that he was essentially broke, despite earning a $2 million salary. He then terminated his business relationship with Santos.
Santos alleges that Nene agreed to "pay him 6 percent of his annual revenue over a seven-year span." With Nene's 6 year, $60 million contract, Santos would receive $600,000 a year, up from the $84,000 salary Santos was previously paid to be Nene's errand boy and interpreter.
The NBPA caps agent fees at 4%. Santos deal with Nene appears to circumvent NBPA agent regulations by claiming he was Nene's business manager, not his agent. But Santos's lawyer stated in an email to Rocky Mountain reporter James Paton that Nene's claims have "cut short" Santos' dream to one day become an NBA agent.
I am guessing Santos' dreams will be shattered if he ever tries to become an NBPA certified agent since he appears to have already violated NBPA agent regs.
It's another sad tale. Won't be the last, but always worth repeating.