Damon, Nady Hit By the Stanford Scandal

From Ken Rosenthal:

Johnny Damon, earning $13 million this season, cannot pay his bills.

Xavier Nady, earning $6.55 million, cannot purchase an apartment in New York.

The Stanford Financial Group scandal extends to Major League Baseball.

The issues facing Damon and Nady — both New York Yankees outfielders and both clients of agent Scott Boras — stem from the alleged $8 billion fraud scheme involving billionaire financier Robert Allen Stanford.

Damon, 35, and Nady, 30, told FOXSports.com on Friday morning that their finances are frozen because of money they have with a Stanford company.

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."

Both Damon and Nady said they were told by their financial advisors that the matter could be resolved within a few days. Damon said he was told that his money was insured by a bank in New York, which Boras identified as the Bank of New York.

Sandy Koufax was one of Bernie Madoff's many victims, and now Damon and Nady are involved in the newest financial scandal to hit the country. What a mess.

Hopefully, as they both said, this gets resolved shortly. Not because I really give a damn about their finances, but I don't want this to be a distraction once the season starts.