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Arkansas coach amends his bankruptcy filing for $40 million in liabilities.
It became widely known that Arkansas head coach John L. Smith was in serious debt after he filed for bankruptcy in mid September. But, as it turns out, Smith's initial filing was only the tip of the iceberg.
Smith amended his bankruptcy filing Wednesday, this time with $40 million in liabilities, according to a report in USA Today. Smith's initial filing called for $26 million in liabilities against $1 million in assets.
Smith's massive debt came from failed real estate investments with five other partners: California Pizza Kitchen CEO G.J. Hart, Louisville developer Steve Canfield, retired doctor John D. Rhodes III, bank executive John R. Mason and anesthesiologist Mushtaque Juneja, according to the report.
"Smith is a sophisticated businessman capable of understanding terms and entering into legally binding contract," Judge Audra Eckerle wrote in her ruling against Smith, according to USA Today. "Having failed to either read or comprehend the significance of the ... provisions, he may not now assert that he was fraudulently induced to sign."
Smith was hired by Arkansas last April after former coach Bobby Petrino was let go amidst a controversy in which he hired a woman he was having an affair with to be his assistant. Smith signed a 10-month, $850,000 contract.