According to a spokesperson for the University of Arkansas, Smith, along with other partners, invested millions of dollars into land development in Kentucky. Those developments didn't pan out.
The UA spokesperson tells Razorback Nation that Athletic Director Jeff Long knew about this issue before offering Smith the job of leading the Hogs, believing it wouldn't hinder his ability to coach.
Smith, a former Hogs assistant coach, was hired to replace Coach Bobby Petrino, who was fired in the spring after a scandal involving a romantic partner to whom he admitted giving money and a job with the University.
According to the school, Smith has not yet filed for bankruptcy, but is strongly considering it. He says if it's necessary to do so, he wants to take care of it before the football season starts to avoid any distraction from leading the Razorbacks to another winning season.