FAYETTEVILLE, Ark. (AP) — John L. Smith always believed real estate development was the safest investment of all, saying “you may not make money, but you won’t lose money.” The Arkansas coach has had to rethink that philosophy in recent years after several of his land deals went bust in Kentucky. Smith told The Associated Press that he is making plans to declare bankruptcy, perhaps during the upcoming season.

“There have been some sleepless nights trying to get this resolved,” Smith said. “There comes a point in time where you say ‘Enough is enough,’ and I want it cleaned up and whatever we have to do, we have to do.”

Smith, also a former coach at Michigan State and Louisville, was hired in April to replace Bobby Petrino, who was fired after revelations that he had hired his mistress to a position in the football department and given her $20,000 in gifts. Smith was an Arkansas assistant for three seasons under Petrino before leaving in December to become the coach at his alma mater, Weber State.

Following Petrino’s firing, Smith approached Arkansas athletic director Jeff Long about the job as was later signed to a 10-month, $850,000 contract. Long said Smith was up front about his financial problems during the hiring process, and he was comfortable the issues wouldn’t affect Smith’s ability to coach the Razorbacks.

“Certainly, initially, I had concerns, but as he explained the situation to me, it clearly became a bad investment,” Long said. “There’s a large differentiation for me between what we had just gone through and someone who had made a bad financial decision and put himself in a financial difficulty. But at the same there, there was nothing inappropriate other than he had engaged in a risky financial deal.”

Smith said his land investments began through acquaintances while he was the coach at Louisville from 1998-2002, starting with one subdivision development and evolving from there.

As the real estate market began to slow several years ago, Smith said, he and his partners faced a difficult time maintaining their investments.

“It just got big,” Smith said, who described his stake as being in the “multi-millions.”

Smith wasn’t sure exactly how much money he owed to creditors, including some of his former partners, but he has started preparing to declare bankruptcy now. He wasn’t 100 percent certain he’ll have to declare, but said “that’s where I am proceeding to get my plate cleaned up.”

Smith said the primary reason he’s talking now is so his personal financial problems don’t become a distraction during the season. The Razorbacks are expected to begin the season ranked in the top 10, with Heisman Trophy candidates at quarterback (Tyler Wilson) and running back (Knile Davis).

“From a personal standpoint, I don’t want the university being embarrassed, but I’m not embarrassed,” Smith said. “It’s something that’s happened. I made some mistakes, and to be honest with you, I’m a football coach, not a businessman.”