'Jerry Maguire' Sports Agent Leigh Steinberg Files for Bankruptcy

Legendary sports agent Leigh Steinberg announced on his website this week that he filed for Chapter 7 personal bankruptcy, saying harassment from creditors and the media kept him from working and having the ability to pay his bills.

Steinberg, 62, of Laguna Niguel, wrote on the blog of Steinberg Sports and Entertainment - his Newport-Beach based law firm - that although he has delayed filing for bankruptcy for several years due to "my moral obligation to people who advanced me funds or performed services in good faith," he was forced into the position to file on Wednesday. "Prospective clients have been pushed away after receiving notice of my debts. It doesn’t seem logical to prevent a person who owes you money from working in their chosen field by attempting to ruin his reputation, but that is what has happened," Steinberg wrote.

Last month Steinberg talked with Laguna Niguel Patch about his s arrest.

"There never was a bench warrant, and I obey all the laws," Steinberg told Patch in a telephone interview at the time. He also disputed reports that he led a lavish lifestyle or was hiding from the law.

In addition, various news accounts, the Irvine Co. won a $1.4-million lawsuit against Steinberg last year for unpaid rent, but has been unable to collect.

According to Steinberg's blog, his financial problems started with an employee taking a $300,000 loan from an NFL client in 2003 without his knowledge. The player, who Steinberg did not identify, then signed with a rival company, run by an agent who used to work at Steinberg's firm. Lawsuits followed and Steinberg lost his certification from the National Football League Players Association to represent players.

Steinberg wrote that he has "made repeated offers to re-pay the player far more than the original $300,000,'' Steinberg said he had "struggled with alcohol for a number of years'' and had begun to "check out episodically for short periods.''

In a career dating back to the 1970s, Steinberg has represented more than 60 NFL first-round draft choices, including eight overall No. 1 choices, along with Hall of Fame quarterbacks Steve Young and Warren Moon. Steinberg is often credited as the inspiration for the 1996 film "Jerry Maguire,'' which starred Tom Cruise.

"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," Steinberg wrote. "My attempts to rebuild my life have been hamstrung."

-City News Service contributed to this report.