By Matt Kaufman, Rakeback.com Poker News Editor
Earlier this month, we reported that Federated Sports + Gaming, the parent company of the Epic Poker League and the Heartland Poker Tour, filed for Chapter 11 bankruptcy.
Jeffrey Pollack, the company's Executive Chairman, stated at the time that "our goal is to stage Event 4 and our Championship as we originally planned."
Considering Chapter 11 bankruptcy is a reorganization of debt, some optimists assumed there would be hope for the company to get a handle on its finances and get back in action.
This week, it would appear that an optimistic opinion on this situation is no longer valid. Details on the bankruptcy have been revealed, and the company is $5-7 million in debt. The list of creditors which are owed money includes production companies, casinos, lawyers, former employees, and even the Disabled American Veterans charity.
The most startling piece of information related to the bankruptcy comes from a proposed budget which was submitted by Federated Sports + Gaming to the bankruptcy court.
The budget proposal included over $450,000 in executive salaries to be paid over the course of three months. Even though the company was bankrupt and in heavy debt, they attempted to continue lavishly paying executives including Annie Duke and Jeffrey Pollack.
It is unfortunate that something which could have been good for poker has to end this way, and even more unfortunate that the lower-level employees at the company are now out of work due to mismanagement of funds (and possibly greed). All we can do now is hope that the company's assets are distributed fairly to the parties that deserve them.
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