FORMER SFA supremo Gordon Smith has been declared bankrupt, the Record can reveal.
The Rangers legend and former Ibrox director has stacked up massive debts of £644,411.
He could now face losing his £500,000 home and possessions, including treasured medals he won as a player.
It’s understood the married dad of two – who has had a string of business interests over the last 15 years – applied for bankruptcy without going through the courts. He was sequestrated through Scotland’s official Accountant in Bankruptcy agency in October.
The 58-year-old’s estate – which will include his villa in an exclusive estate in Newton Mearns, near Glasgow – is now in the hands of AiB-appointed accountants tasked with selling off any assets to repay creditors.
News of Smith’s financial crisis will shock football fans who have followed his career as a successful player, agent, top-earning chief executive at the SFA and stint as director of football at Ibrox.
Last night, a legal source said: “A personal bankruptcy is a painful and potentially devastating process.
“Businessmen will generally prefer to see their company go into administration or liquidation so that personal assets such as their house are not on the line.
“An individual will apply to AiB to be sequestrated because they know they are in real trouble and creditors will soon be taking legal action.
“It seems odd that someone who would appear to have had a successful career would find themselves in this position.
“But you never know what sort of bad deals or legal wrangles someone can have been getting into behind the scenes.”
As Smith didn’t go through the courts, details of his creditors have not been made public, though they will be listed on files with AiB.
Accountant Donald McKinnon, of Glasgow firm Wylie and Bisset, has been appointed to sell off Smith’s assets
A spokeswoman for AiB said: “I can confirm that Mr Smith was sequestrated on 12/10/12 declaring debts of £644,411.00 and that the Accountant in Bankruptcy was appointed trustee.
“Unfortunately, AiB cannot disclose case specific details other than those contained within the free and publicly accessible register. ”
Mr McKinnon has refused to comment on the case. Smith has set up a string of companies over the last 15 years and has held 18 directorships since 1997.
But a Companies House search yesterday confirmed he has resigned from all his
positions on boards and closed down all his businesses.
He started his career with Kilmarnock before signing for Rangers in 1977, where “Smudger” won the hearts of fans after scoring 27 goals in a first season that saw the club win the treble.
He went on to play for clubs including Manchester City and Swiss side FC Basel before retiring to become a players’ agent, pundit and newspaper columnist.
Smith was perceived as a shrewd business operator and was appointed chief executive of the SFA in 2007, a post he held until 2010. He went on to become director of football at Gers during Craig Whyte’s disastrous reign – but stepped down when the club went into administration.
Smith has a son, Grant, 32, and daughter, Libby, 24, with wife Marlene, 58.
In 2009, it was revealed Smith had been helping finance Libby’s music career. She had formed girl band Accent with pals Bianca Redpath, Ashley Jenkins and Kathleen Cooney.
They twice made the X Factor bootcamp but split a year later.
Smith declined to comment when we contacted him yesterday.
