Athletes’ Investment Company Could Face Bankruptcy

A company that manages investments for nearly 100 current and former professional athletes has defaulted on large loans and could face bankruptcy, the San Francisco Chronicle reported in its Saturday editions.

Technical Equities Corp., of San Jose, which represents sports figures including Don Drysdale, Rick Barry and at least 15 members of the Raiders, apparently was the victim of soured real estate loans, the newspaper said.

Drysdale, the Dodgers’ Hall of Fame pitcher, said officials at the company told him it looked as if “all of a sudden” the real estate department of the $68 million-a-year company “got into a mom-and-pop operation, taking a good investment and (using it to pay) off a bad one.”

Barry, a former star with the Golden State Warriors, is a broadcaster for the Lakers.

The paper said investors and the company had borrowed heavily to buy real estate that had not increased in value as much has had been projected.

Company officials said that without the cooperation of impatient lenders, the firm could be forced into bankruptcy, the paper said.

Company founder and chairman, sports agent Harry Stern, resigned his post Friday and was replaced by Thomas Wiley although Stern remained on the company board of directors, the paper said. William Gates resigned as president but also remained on the board.

Other sports figures who have invested through the firm are golfer Sally Little, and former Raider stars Dave Casper and Fred Belitnikoff, the paper said.

Mike Ornstein, publicity agent for the Raiders, said he and at least 15 Raider players had turned over management of their investments to Stern.