Fayetteville, AR – Arkansas Razorbacks coach John L. Smith was in bankruptcy court this week in an attempt to wipe away $25.7 million debt, all the while hanging on to $1.2 million in retirement savings and some of his personal property.
Smith will meet with a long list of creditors at US Bankruptcy court in Fayetteville on October 12. During that meeting, his attorney will work to pay out any remaining money held by the coach in order to satisfy creditors.
Much of the head coach’s debts came about after he heavily invested in real estate just before land values nosedived. On September 6, the coach filed for bankruptcy while showcasing huge financial losses.
At this time, Smith is receiving $850,000 from Arkansas along with an additional $35,643 from his alma mater, Weber State. John L. Smith has also earned $9,810 from Nike and $1,057 from a football camp.
The court filing includes 26 unsecured creditors with the largest $20 million debt owed to Terra Springs LLC of Louisville. Smith also owes $2 million to Republic Bank and $902,000 to King Southern Bank.
Should talks with creditors move forward, Smith will exit chapter 7 bankruptcy with no debt.
In an Associated Press release, coach Smith said of his financial situation:
“It’s something that’s happened. I made some mistakes, and to be honest with you, I’m a football coach, not a businessman.”
If the Arkansas Razorbacks coach doesn’t manage to turn around his team’s performances, he could find himself broke and without a job. The Razorbacks are 1-2 on the season and will take on 3-0 Rutgers on Saturday.