NFL star Adrian Peterson embroiled in a dispute with Morgan Stanley

Personal Finance

Adrian Peterson #26 of the Washington Redskins looks on after being tackled by the Philadelphia Eagles during the first half at FedExField on Dec. 30, 2018 in Landover, Maryland.

Scott Taetsch | Getty Images Sport | Getty Images

Adrian Peterson is heading to arbitration against Morgan Stanley Wealth Management over an investment dispute, the latest entry in a series of financial issues for the 34-year-old NFL star.

Details of the claim are scarce, as arbitration is a private way for the two sides to hash out a disagreement before a third party – and keep it out of the public eye as would be the case when filing suit in court.

Brokerage houses and investment advisors often have clients agree to private arbitration to resolve disagreements.

Peterson reportedly has earned more than $100 million over the course of 12 years with the NFL. He’s currently in the middle of a two-year contract with the Washington Redskins.

“The arbitration is ongoing. We have no further comment,” wrote Chase Carlson of Carlson Law, in an email to CNBC.

He is representing Peterson, along with Sam Edwards and Ryan Cook of Shepherd Smith Edwards & Kantas in Houston.

“We are defending against these claims, which we believe are without merit,” wrote Christine Jockle, a spokeswoman for Morgan Stanley, in an email.

The Athletic originally reported on the dispute between the athlete and the brokerage firm.

Last year, Peterson fought creditors in court over millions in unpaid loans.

DeAngelo Vehicle Sales LLC, a McAdoo, Pennsylvania-based creditor, is suing Peterson, alleging he had failed to fully repay a $5.2 million loan.

With interest and other fees, the sum claimed tallied up to $6.6 million.

The DeAngelo case is still ongoing. The latest court documents show Peterson disputing the plaintiff’s motion for summary judgment in August 2019.

While professional athletes can wind up with a massive windfall in a relatively short period of time, they can be easy prey for scammers. They also struggle with saving and budgeting.

A rookie NFL player on a team’s active list earned a minimum salary of $495,000 in 2019, but the average career lasts 3.3 years, according to the NFL Players Association.

More from Personal Finance:
Here are the winners and losers of the Trump tax cuts
They worked at a Catholic hospital and lost their pension
Two items in Trump’s budget call for changes to Medicare

Leave a Reply

Your email address will not be published. Required fields are marked *