1. Welcome to SportsJournalists.com, a friendly forum for discussing all things sports and journalism.

    Your voice is missing! You will need to register for a free account to get access to the following site features:
    • Reply to discussions and create your own threads.
    • Access to private conversations with other members.
    • Fewer ads.

    We hope to see you as a part of our community soon!

Leigh Steinberg files for bankruptcy

Discussion in 'Sports and News' started by LongTimeListener, Jan 11, 2012.

  1. LongTimeListener

    LongTimeListener Well-Known Member

    In this first-person account on Yahoo, he says he was too focused on getting sober to worry about his debts, and that it is his lawyer's fault for keeping him away from that court date that resulted in the bench warrant over his $1.4 million arrest.


    He's talking here about former NFL player Chad Morton, who sued about three years after the money dispute happens, saying Steinberg had never paid him back.

    The underlying cause of my inability to earn money and resolve my debt situation occurred in 2003. One of my employees admitted that -- without my knowledge -- he had taken a $300,000 loan from one of our NFL clients. It was exactly the kind of transaction that I had specifically forbidden, and it violated NFL Players Association regulations. The NFL player understandably fired me, then went to a rival agency. As a matter of background, you should know that this company is run by an agent who used to work at our firm. We filed a lawsuit to challenge the way this agent had left our firm, and we won. Two attorneys on the losing side are involved in the current case concerning my debt.

    Since then, I have made repeated offers to repay the player far more than the original $300,000. There are many legal complexities, but in a nutshell, his representatives -- the ones who lost the lawsuit -- have insisted on collecting monies without informing the NFLPA that the matter is settled. This point is crucial because I did not apply for recertification by the union after one of their agents (and his wife) filed suit against me in 2006. If I cannot be recertified, I cannot work in the field that I have been trained in, which is to the benefit of this rival agent. Keeping me out of business seems to be a priority above collecting the debt, and although substantial payments have been made, the demand is now four times the original amount. My attempts to rebuild my life have been hamstrung.

    Says on Facebook that he is 662 days sober.

    At the risk of offending people who know far more about addiction and the various programs that I do, Messr. Steinberg seems to be issuing a rote "I take all the blame" and then blaming everybody else.
  2. TheSportsPredictor

    TheSportsPredictor Well-Known Member

  3. qtlaw

    qtlaw Well-Known Member

    Very convoluted.

    If he won the lawsuit, he should be certified.

    If the player is offered the $ owing, Steinberg should file a lawsuit to be reinstated since he's tendered the $$ due and force the player to prove that he's due more. Once the suit is filed, he can request an injunction against him being found decertified for nonpayment.

    Ah, but there is probably much more at play here.
  4. qtlaw

    qtlaw Well-Known Member

    Bench warrants from a civil court are very rare; usually you get at least 1 opportunity to explain why you no showed before you get a warrant on you. I bet there's been a pattern of missed appearances previously before the one he missed leading to the bench warrant. My point, there was more than likely more than just 1 missed court appearance but Steinberg does not discuss that.

    Pretty sad state of affairs for him, going from the pinnacle to BK.
  5. The Big Ragu

    The Big Ragu Moderator Staff Member

    Sounds like he is in bad shape. He filed for bankruptcy late yesterday. He has struggled with alcohol addiction and said he "lost track" while he was in rehab. It sounds like he has had bill collectors all over him for close to a decade, and he did everything he could to hold off on filing for bankruptcy. He's not a bad guy. Just sounds like he hit a really low point: He was in major debt and at the same point admitted to himself that he was an alcoholic. Hopefully things are up from here.
  6. Herbert Anchovy

    Herbert Anchovy Active Member

    So that's why he looked so awful. He aged overnight.
  7. playthrough

    playthrough Moderator Staff Member

    Couldn't believe this when I first saw the headline. It's the players that go bankrupt, not the agents.
  8. The Big Ragu

    The Big Ragu Moderator Staff Member

    Steinberg hasn't been certified by the NFLPA for years, and he has been in a dogfight (which I don't know all the details of) with David Dunn, who took most of Steinberg's players when he started his own agency.

    Take a pretty extravagant lifestyle, add in the fact that he probably hasn't earned anything in years, and the details probably read like a really good cautionary tale for how to handle success.
  9. joe king

    joe king Active Member

    Time for a sequel to Jerry Maguire?
  10. Armchair_QB

    Armchair_QB Well-Known Member

    I believe he is still June Jones' agent. Seem to recall his name being mentioned when Jones was talking to Arizona State.
  11. The Big Ragu

    The Big Ragu Moderator Staff Member

    I mat be wrong about Steinberg losing his NFLPA certification. ... Sorry if I posted wrong info. But I do know that when he split with the Tollners several years ago, they took the clients.
  12. LongTimeListener

    LongTimeListener Well-Known Member

    That excerpt says he "did not apply for recertification" in the middle of the court case that started this mess. I presume that was because he knew he would be denied.

    Reading back on the news accounts five years ago, it sounds like Chad Morton made several attempts to get his money back, but it was never actually money -- at one point it was an equity position in a China-based startup that never got off the ground -- and there was always a last-second problem with the paperwork.

    I don't know if it's possible to do, but I would love to see an estimate of his earnings over the years. Many tens of millions of dollars, I'm guessing.
Draft saved Draft deleted

Share This Page