Inside the Carolina Panthers' Unpaid Invoices Controversy

Why Are We Talking About Carolina Panthers Unpaid Invoices?

In recent years, news reports have surfaced about the Carolina Panthers and related entities—particularly involving their now-defunct practice facility project in Rock Hill, South Carolina—leaving a trail of unpaid invoices owed to contractors and vendors. While the issue eventually led to legal disputes, bankruptcies, and public scrutiny, it highlights a broader question: what happens when a major organization delays or refuses to pay its bills?

When a business—especially a high-profile one—fails to pay its invoices, the consequences ripple across vendors, subcontractors, and even municipal budgets. For small businesses, these delays can jeopardize payroll, strain credit lines, and force layoffs. It mirrors the pain felt by freelancers and startups when unpaid invoices stall their cash flow.

What Happened With the Panthers’ Practice Facility?

In 2019, the Carolina Panthers and owner David Tepper announced a massive new headquarters and training facility in Rock Hill. The $800+ million project promised jobs, economic activity, and regional pride. But by 2022, the project had collapsed due to financial disagreements between Tepper’s real estate company (GT Real Estate) and local authorities.

The fallout:

• GT Real Estate filed for bankruptcy

• Contractors and suppliers filed over $90 million in claims for unpaid invoices

• Allegations surfaced about contractors receiving partial payments or none at all

• Legal battles ensued to recover funds

For many vendors, the unpaid balances represented months of labor and material expenses. The situation echoed what small businesses face when clients ignore payment terms—only on a much larger scale.

Why This Matters to Small Businesses and Vendors

The Panthers’ case may involve millions, but the lessons apply to anyone offering services to larger clients. Some of the same issues pop up in smaller engagements:

• Late or missed payments without clear communication

• Clients reneging on contracts during financial downturns

• Delays in dispute resolution that force service providers to cover operating costs

Whether you're a contractor, consultant, or agency, you’ve likely faced similar dynamics. That’s why strong contract terms, payment schedules, and follow-up systems—like those used in back-office operations—are essential.

Key Lessons From the Panthers’ Unpaid Invoice Dispute

Let’s break down what every business can learn:

1. Don’t Skip the Payment Terms

Even when working with large, prestigious clients, insist on clear payment timelines, milestones, and late fees. Trust isn’t a substitute for documentation—much like freelancer agreements that outline scope and billing terms upfront.

2. Track Every Invoice and Communication

Keep detailed records of when invoices were sent, acknowledged, and followed up on. Use email timestamps, invoice platforms, and task managers.

This mirrors how businesses use virtual assistants to track admin tasks and ensure nothing slips through the cracks.

3. Know When to Escalate

If a client repeatedly delays payment without explanation, pause services, send a final notice, and prepare to escalate legally or through collections.

Many Panthers vendors had to rely on the bankruptcy process to file claims. That’s a worst-case scenario, but it shows why it’s better to act early—just as you’d intervene fast when project deliverables go off-schedule.

How Vendors Tried to Recover Their Payments

When the Panthers’ Rock Hill facility project collapsed, contractors and suppliers found themselves in a tough spot. Many had already provided labor, materials, or services without full payment. Some had even extended credit or continued working in good faith based on assurances from GT Real Estate.

The only option left? Filing claims in bankruptcy court.

How the Process Worked:

1. GT Real Estate filed for Chapter 11 bankruptcy, listing over $170 million in liabilities.

2. More than 50 contractors and vendors submitted claims totaling over $90 million.

3. Bankruptcy court reviewed claims to determine their validity and payment priority.

4. Some vendors received partial payments. Others waited months or years.

The bankruptcy dragged out the process, and many vendors had to write off large portions of what they were owed. Others absorbed major losses that impacted their ability to take on new work—just as delayed client payments hurt small service providers.

How to Protect Your Business From Large Client Defaults

While NFL teams and billion-dollar developers may seem like safe clients, no deal is truly risk-free. To protect your business, especially when working with large organizations, consider the following:

1. Use Strong Contracts With Clear Payment Schedules

Your contract should specify:

• Payment due dates

• Payment triggers (e.g., after milestones or delivery)

• Late fees and interest terms

• Escalation procedures (collections, legal action)

This gives you a legal foundation if payments stop—similar to how outsourcing agreements protect service providers in B2B deals.

2. Request Upfront Deposits

Even when working with enterprise clients, it’s reasonable to request partial upfront payments. This helps cover:

• Initial material or labor costs

• Business overhead

• Risk of partial nonpayment

Deposits are standard in consulting, construction, marketing, and tech—just like retainer billing structures that smooth cash flow.

3. Monitor Payment Behavior Closely

If a large client starts:

• Delaying payments

• Making partial payments

• Ignoring your emails

• Asking for more work before clearing the last bill

…these are red flags. Pause work, escalate internally, and document everything.

Think of it like managing a remote team’s accountability—tracking performance is key to healthy collaboration.

4. Work With a Collections Partner If Needed

Some unpaid invoices are too large to ignore but too complex to chase solo. A reputable collections firm can help recover large debts while maintaining professionalism.

Many businesses treat collections as a last resort, but it can be effective—just like outsourcing admin or finance processes to regain time and focus.

Practical Tips for Vendors to Secure Payments in Large Projects

High-profile clients and big-budget projects can be exciting, but they also carry greater financial exposure. The situation with the Carolina Panthers shows how even the most promising contracts can collapse—and leave dozens of vendors unpaid.

To help you avoid similar pitfalls, here are practical steps vendors and service providers can take to safeguard payments during large-scale projects.

Clarify Payment Milestones Upfront

Never begin work on a verbal agreement alone. Before you deliver a product or service, ensure that you have clear documentation on when and how you’ll be paid.

For large or long-term projects, structure payments into milestones:

• Deposit before project launch

• Progress payments at specific intervals

• Final balance upon completion or delivery

This not only ensures you’re getting paid as work progresses—it also reduces the financial impact if something goes wrong.

Require Signed Change Orders

Scope creep is common in construction, consulting, creative work, and software development. If a client requests additional services, require a signed change order that includes updated costs and payment terms.

Otherwise, you may deliver extra work without the ability to collect payment later.

Treat change orders like mini-contracts. They should:

• Reference the original agreement

• Be signed by both parties

• List specific deliverables and costs

• Indicate updated payment deadlines

This documentation creates legal protection and reflects how smart businesses manage back office operations with systemized oversight.

Avoid Extended Credit Terms Without History

New vendors often feel pressured to offer Net-30 or even Net-60 payment terms to large clients. But long payment terms should be earned—not given at the start.

Instead:

• Ask for deposits or milestone billing for new clients

• Only offer Net-30 or longer terms to returning, timely-paying clients

• Include penalties for late payments, like a percentage-based fee or flat surcharge

Payment flexibility should come after the relationship has demonstrated reliability. Think of it as the financial equivalent of giving team access to sensitive data—do it slowly and with control.

Use Escrow for High-Value Projects

When trust hasn’t been fully established and the contract value is large, using an escrow service can protect both parties. Escrow platforms hold funds until specific milestones are met, releasing payments as work is delivered.

It’s commonly used in international trade, freelance platforms, and tech development. Escrow arrangements reduce payment risk while keeping both sides accountable.

Automate Invoicing and Reminders

Don’t rely on manual processes to chase down payments. Use invoicing platforms like:

• QuickBooks

• FreshBooks

• Zoho Invoice

• Xero

• Wave

Most of these tools offer automated:

• Invoice generation

• Email reminders

• Payment receipts

• Overdue notices

This kind of automation mirrors how businesses use virtual assistants to manage routine follow-ups, saving time and ensuring consistency.

Pause Work if Payments Fall Behind

One of the strongest levers you have as a vendor is the ability to stop work. If a client becomes non-responsive or late on payments, pausing service adds urgency and limits your exposure.

Your contract should include language like:

“If payment is not received within [X] days of the due date, service may be paused until the outstanding balance is resolved.”

This sets expectations and creates leverage in a professional way.

Hire Legal Help for Disputes Over $5,000

While you may be reluctant to hire an attorney, larger unpaid balances justify it. A well-written demand letter from a law firm often prompts action without requiring litigation.

In more serious cases, small claims court or a breach-of-contract lawsuit may be the only way to recover funds. If your agreement includes a legal fees clause, you may even be able to recover your attorney costs if you win.

Think of it like investing in tech tools for remote operations—the upfront cost pays off through efficiency and protection.

Consider a Collections Agency as a Last Resort

If the debt is too large to walk away from, but the client refuses to pay or respond, consider hiring a collections firm. Many agencies operate on a contingency basis, meaning you only pay if they recover the debt.

While they take a percentage of the recovered funds (typically 20% to 40%), it’s better than recovering nothing.

Add Clients to a CRM or Payment Tracker

Use a client relationship manager (CRM) or spreadsheet to log payment behavior:

• Date invoices are sent

• Payment receipt date

• Number of follow-ups required

• Any delays or disputes

This lets you score clients over time. If a pattern of late payments emerges, adjust your terms accordingly—just as you would refine vendor contracts during outsourcing reviews.

Final Thought: Protect First, Trust Second

Even high-profile clients like the Carolina Panthers can leave invoices unpaid. What matters is that you build a business that’s protected from risk—one where no single project can derail your finances, and every client interaction is governed by solid contracts, automation, and escalation systems.

Trust is essential in business—but it should never replace documentation, follow-through, and boundaries.

Final Takeaway: Trust, but Protect Yourself

The Carolina Panthers unpaid invoice saga reminds us that even powerful clients can fail to pay. Vendors and contractors must balance optimism with solid operational safeguards.

Every unpaid invoice teaches a lesson:

• Set firm expectations

• Enforce deadlines

• Don’t overextend credit

• Know your legal options

• Prioritize documentation

Whether you’re working with an NFL team or a local startup, the same principles apply.

About OpsArmy

OpsArmy is building AI-native back office operations as a service (OaaS). We help businesses run their day-to-day operations with AI-augmented teams, delivering outcomes across sales, admin, finance, and hiring. Visit operationsarmy.com to learn more.

Sources

• Charlotte Observer: https://www.charlotteobserver.com/news

• WCNC Charlotte: https://www.wcnc.com

• Associated Press: https://apnews.com

• US Bankruptcy Court Documents – GT Real Estate