Wow,

quote:

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he has $40.7 million liabilities and $1.3 million in assets,according to the updated documents. On Sept. 19, he reported he had $25.7 million in liabilities and $1.2 million in assets.

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http://www.usatoday.com/story/sports/ncaaf/sec/2012/10/03/arkansas-john-l-smith-bankruptcy/1611055/

How in the hell does this idiot get hired to do anything?

Who lent him $26 million based on a balance sheet of $1.2 million in assets? Think there might have been some big ass speculating going on there.

It was real estate deals before the bubble popped. I'm sure during that time some lender saw head coach and heard he made a lot of money and made a giant ass loan.

Good ole boys in Arkansas make deals like this all the time.

Don't know but I bet he was a partner in some deals that went south....probably had joint liability with other....imagine all his partners went under and he was the last man standing....like many others he would have done better to put his investment in a shoe box under his bed....feel sorry for him, but doubt that he has missed many meals....

^^

What Raven said. He might have had 5% of the equity but his guarantee was joint and several. Very common in the partnership structures when borrowing. Too bad his guarantees were not simple carve outs like most originations leading to the bubble.

So he's on the hook for all of his partners' share of the debt...

Let that be a lesson for us all...

Actually, that has been a "lesson" since the earth cooled.

The bottom line is that over 90% of the general population is not well versed in high dollar finance and shouldn't be screwing with it until they are.

Just as with anything else, don't mess with it if you don't know much or anything about it.