Relationship with Failed Financial Advisor Triggers NFLPA Investigation of Drew Rosenhaus
The NFLPA is looking into whether player agent Drew Rosenhaus should have more closely scrutinized his relationship with financial advisor Jeff Rubin. The investigation seeks to determine whether Rosenhaus breached his fiduciary duty to the players he represented – a duty owed to the players by all agents certified by the NFLPA – by not closely investigating the practices and credibility of Rubin before trusting him with the players’ monetary investments, many of which failed catastrophically.
Among other questionable acts, Rubin has drawn widespread scrutiny for his investments in a failed Alabama bingo casino venture that cost 35 NFL players as much as $43.6 million when the venture went bankrupt earlier this year. Notably, several legal documents seem to indicate that Rubin had mishandled client money as early as 2003, behavior that should have put Rosenhaus on notice that Rubin was not a sound investor for his player clients. Rubin’s questionable financial acumen extended to his personal life as well; previously, he had purchased a multi-million dollar Florida home near several of his clients in 2005, and later, defaulted on a lease agreement for a Lamborghini in 2008.
Rosenhaus’ relationship with Rubin has also drawn attention based on the fact that the two shared many high profile clients – as many as 26 at one time or another. Still, Rosenhaus and his brother Jason (who both work for the Rosenhaus Sports Representation company) flatly deny a recruitment/referral business with Rubin. Rubin declined to comment on the issue when asked on several occasions.
The Rosenhaus brothers were particularly vague when questioned on their professional duties as agents of NFL players, stating that they had a duty to investigate the credentials of the financial investors they referred only “to a reasonable extent,” and insisted that it was impossible to fully vet and advisor before making a referral. Drew noted, “[t]he biggest problem is, you can do a bunch of research on a financial planner, [he] could have great recommendations from players . . . could be in good standing and then [he] goes off and does something . . . out of character. . . Anytime you recommend someone, that’s a tough thing. I make sure to tell guys that I can’t vouch for anybody but myself and Jason.”