Padres’ Gwynn, Owing More Than $1.1 Million, Files for Bankruptcy
Outfielder Tony Gwynn of the San Diego Padres and his wife filed for bankruptcy, citing liabilities of $1,147,000 and assets of $690,150.
A petition for liquidation of the Gwynn’s debt was filed Friday in U.S. Bankruptcy Court in San Diego.
Gwynn, who will earn $700,000 playing for the Padres this year, refused to comment on the matter. According to his attorney, Bob Teaff, of La Jolla, Gwynn’s liabilities “predominantly arise from business and investment claims.”
“Mr. and Mrs. (Alicia) Gwynn were exposed to substantial liabilities during a period of time when they were receiving advice from a former attorney-agent,” Teaff said.
Teaff refused to identify the former attorney-agent.
When Gwynn, 27, signed a five-year contract with the Padres in 1984, his agent was Lew Muller. That contract gave Gwynn a salary of $400,000 in 1985 and he was scheduled to receive a $100,000 raise per year.
An unidentified source told the San Diego Union that Muller continued to advise Gwynn on business matters after the contract was signed.
According to court documents, Gwynn owes $45,000 in back taxes to the federal government.
Gwynn’s largest listed asset is his home in Poway, valued at $480,000. He also reported income of $54,096 from Tony Gwynn Enterprises and $2,000 from the San Diego School of Baseball.
By filing for bankruptcy, Gwynn freezes his financial position. His creditors must present their case in court and may not try to collect his future earnings to pay off his current debts.