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Epic Poker Statement Shows More Than $7.8M in Liabilities

Company Made $37,052, Executives Paid $1.1M And Requesting Additional $660K In Unpaid Wages

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Recent bankruptcy document filings shed more light on the finances of the Epic Poker League and its parent company, Federated Sports and Gaming.

On Feb. 28, 2012, the Epic Poker League filed for Chapter 11 bankruptcy. Initial filings have shown that more than 100 creditors are owed, in total, more than $5 million.

A Statement of Financial Affairs filed April 3, 2012 shows Federated Sports and Gaming is in worse shape than initially reported, with total liabilities approaching $8 million.

The company managed to earn just $37,052 in income over a 14 month period while racking up $7,892,242 in total liabilities.

Epic Poker ran three poker tournaments, adding money to each prize pool and paying the CBS Corporation to televise the tournaments. It cancelled its fourth tournament, along with a fifth, which promised a $1 million freeroll for the league’s top performers in the inaugural season.

Federated Sports’ Statement of Financial Affairs shows that from Nov. 29, 2011 to Feb. 29, 2012, the company paid vendors more than $2.4 million.

Also, since Federated Sports opened its doors, five Federated Sports officers were paid more than $1.1 million. Those officers include Annie Duke ($299,784), Jeffery Pollack ($226,652), Daniel Goldberg ($181,062), Jeffrey Grosman ($216,666) and Michael Brodsky ($166,666).

Annie Duke in 2010The statement also shows $662,801 in additional unpaid wages and business development expenses requested by these officers, including $71,669 for Duke, $169,322 for Pollack, $167,962 for Goldberg, $67,796 for Grosman and $149,050 for Brodsky. These unpaid wages and expenses are from 2010, 2011 and 2012.

The largest Federated Sports liabilities include $2,093,447 owed to PNK Development 10, LLC, a subsidiary of Las Vegas-based regional casino operator Pinnacle Entertainment (PNK. NYSE), $1,966,052 owed to All In Productions, the Fargo, N.D., company that agreed to sell Federated its Heartland Poker Tour last year and $1 million owed to CountryLine, LLC, a private equity firm held by the Pritzker Group.

The more than $7.8 million in liabilities doesn’t include any equity financing Federated Sports received. Additionally, Federated Sports received $2.5 million in private equity financing from an investment group that included J.B. Pritzker, principal owner of Hyatt Hotels Corp. and TransUnion Corp., according to Chicago Business.

Heartland Poker Tour Trudges On

Despite the financial woes of its parent company, the Heartland Poker Tour continues to operate its business uninterrupted.

Federated Heartland also submitted a Statement of Financial Affairs on April 3. It shows the Heartland Poker Tour generated approximately $800,000 in income for Federated since the acquisition nine months ago.

Last month, the Heartland Poker Tour hosted its 100th event, held at River City Casino and Lumiere Park Casino in St. Louis, Missouri.

The tour has three events scheduled in April of 2012, with the next stop kicking off at the Palms Casino Resort April 6.

The Bankruptcy court has approved an order and monthly operating budget for Federated Sports and Gaming and Federated Heartland.

With the new filings, the bankruptcy court approved an extension to fund the operations of the businesses though April.

 
 
 
 

Comments

dgwozdz
over 2 years ago

Gee, who could have seen this coming besides, like, everyone in the world. Anne Duke, you're as crooked as your scum bag brother.

 
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Scott6
over 2 years ago

I wrote "The Annie Duke File" at my blog. http://scottyclark65.blogspot.com/2012/03/annie-duke-file-pt1.html The five-part piece is getting a lot of attention in a lot of places, and I would hope the Schulman family does not mind me posting the link. I am betting the phrase "may be removed" will not be enforced in this matter, if I am mistaken, please accept my apologies. Respectfully, SC

 
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bparmalee
over 2 years ago

A prize pool will and shall ever be equal to total entries - rake. There will never be a situation where a league or tourney series will be able to sustain overlays or massive free rolls. There are no main stream advertisers interested in back poker (hang in their Jack Links). When online poker comes back maybe televised poker will get a boost but until then its on rocky ground. I mean how people could look at the EPL and see a solid business model is laughable.... overlays and 1 million dollar free rolls... I thought poker players were good at math.

 
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x19
over 2 years ago

both her and her thief brother have taken millions and both have the majority of that money in their possesion....yet there hasn't been one dime repatriated by either knowing full well that the money rightfully belongs to others......when people SHOW you who they really are BELIEVE THEM.....Annie and Howard are both greedy detestable pieces of S..t.

 
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clunker
over 2 years ago

Hey can I have a job there and over pay my self, with none existent funds, stiff every one I owe money to then claim I did such a great job the company owes me still more money. Sounds like Full Tilt Poker II. Hopefully there are no more little Annie or Howard"s left at home poker can't take much more of this family.

 
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iambobby
over 2 years ago

I wish they would write a book on how they do what they do, and not go to jail or have to pay the money back. sounds like a get rich plan that works.

Goes to prove ( a fool and his money part quickly.) Hard to imagine over 100 people stupid enough to fall for her scam. Ask anyone their opinion and they would not speak highly of her.

Would love to see them both scooped.

 
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slyeyetom12
over 2 years ago

i said it in a post on the epic site wich was removed quickly.. the reason epic failed was because it was started with player funds from full tilt.. dont kid yourself to think othberwise..tghe proof is in the pudding and there is no reason that this should not be investigated..

 
 

Kind_Bud
over 2 years ago

Interesting sly, call me nieve but I would like to know more about epl using ftp funds, I haven't even thought of that.

 
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clunker
over 2 years ago

Why would you think Epic was started with FTP players funds. They started with zero money and found enough stupid people to put up almost 8 million $'s which is what they now owe while paying them selves handsomly. People play poker because of the lure of making and an easy living. In real life the lure of easy money usually means your going to get taken to the cleaners by a person who is smarter then you who uses your greed and lazyness against you.

 
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