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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.