While NFL stars earn massive sums throughout their careers, it’s well-documented that many still end up facing financial struggles. These athletes are often targeted by scams, and to help prevent such situations, a former Kansas City Chiefs safety has taken to social media to raise awareness about a new crime ring.

“If you are an athlete and someone comes to you saying they want you to invest in or represent a SPAC, and they are specifically targeting athletes bc of “X, Y, Z”… RUN AWAY!!!!!” Justin Reid shared a detailed message on X to alert his fellow players about a new scam making the rounds. “This is a scam where they are manipulating you to invest your money and TAKE A CUT before the investment ever happens. They get paid regardless, even after the SPAC very likely will flop. They are using you, and you are quite literally paying the price.”

“If you are an athlete and they ask you to represent or find investors for this SPAC in exchange for a promise of commission, stock, or some other version of compensation, THIS IS ILLEGAL since you do not own a broker license and that is known as broker activity. They are using you to do their dirty work and leverage your relationships for profit at the expense of your friends.”

As per the Harvard Business Journal, a Special Purpose Acquisition Company (SPAC) is a shell company that raises capital through an Initial Public Offering (IPO) to acquire or merge with a private firm. These ventures take companies public within 3-6 months and are known as “blank check companies,” as they provide a faster alternative to traditional IPOs but often carry higher risks.

Using this MO, these companies target a notable celebrity or athlete to invest in a SPAC and promise them massive returns in a brief span of time. However, these investors are often at risk as the sponsors of these SPACs (the first investor in a venture, who raises the initial capital) hold all the cards. Unlike an IPO, the sponsor starts with a 20% stake, called a “Promote,” which brings with it much less regulatory scrutiny.

However, this “Sponsor” invests almost nothing in exchange for this 20% stake and hence can walk away with millions or tens of millions of dollars even if the SPAC performs horribly and the share price plummets. This is a certainty, while normal investors, like the athletes lured, lose everything. And even if the post-merger SPAC performs well, the sponsor earns a disproportionate amount of the proceeds.

Hence, Justin Reid shared this detailed message on social media, as 78% of NFL players go bankrupt or fall into severe financial stress within just two years of retirement, as per Kiplinger. To avoid such a future, Reid wants his fellow NFL stars to stay aware and ask questions about how and where they are investing their money.

“If you are an athlete or know an athlete, don’t allow yourself or your friends to be used for your money or your relationships,” Reid tweeted. “Ask a ton of questions, and most importantly, ask someone who has YEARS of experience in the space about it, and make this group talk to them about it.”

While Justin Reid continues to raise awareness about financial scams, the star safety has also helped out his current team, the New Orleans Saints, to create financial relief as the franchise recently restructured his contract to improve their cap space.

Saints restructure Justin Reid’s contract for salary cap relief

After finishing the 2025 season on a disappointing note with a 6-11 record and placing fourth in the NFC South, the New Orleans Saints are leaving no stone unturned to improve their cap space and present head coach Kellen Moore with the opportunity to build a competent roster for the 2026 season. Hence, the New Orleans front office restructured Justin Reid’s three-year, $31.5 million contract.

The Saints converted $7.95 million of the safety’s $9.25 million base salary into a signing bonus. With this move, Reid’s salary will be pushed into the next five seasons while his contract still automatically voids at the end of the 2027 league year. After this restructuring, Reid’s salary cap number went down from $11.55 million to $5.19 million, creating $6.36 million in savings.

While helping out the Saints, Justin Reid remains adamant about using his platform to protect fellow athletes from financial scams. For instance, last year, former Miami Dolphins safety Reshad Jones lost $2.58 million after becoming the victim of a large-scale theft and money laundering scheme. And interestingly, this scam spanned from 2019 to 2024. With so many NFL players facing money troubles after retirement, his warning is both timely and important.