Phenoms: Fantasy Football Site Unable to Meet Full Prize Obligations, Plans to Declare Bankruptcy

This notice follows the letter posted to the site last Saturday. In that letter, it was noted that Phenom Enterprises, LLC (‘Phenoms’) was facing financial problems. Phenoms has received a significant number of emails and other communications in the wake of that letter–this notice responds generally to the concerns raised in them.

After conferring with legal counsel, and barring some intervening event (such as an acceptable offer to purchase the company), Phenoms will be pursuing bankruptcy. In bankruptcy, a trustee will be appointed who will take control of all of Phenoms’ assets and make distributions to claimants according to relevant legal requirements. Additionally, the bankruptcy court and the trustee will oversee and review company finances.

Due to the foregoing, you are invited to update your account information at https://www.phenomsff.com/account/editprofile.php. You should then be on the lookout for a notice regarding filing a claim against Phenoms, which will be sent via mail and/or email, and posted on Phenoms’ website (phenomsff.com).

Phenoms cannot answer questions regarding the time-line of the bankruptcy process nor the amounts claimants could expect to receive. Those answers are ultimately dependent on the bankruptcy court process. Relevant updates will be posted here on Phenoms’ website.

Thank you.

(12/13/2014)
Dear Valued Players,

It is with deep regret that I inform you that Phenom Enterprises, LLC, (‘Phenoms’) will be unable to meet the full prize money obligations for the 2014 football season, barring any last-minute deals. A portion should be available, estimated to be between 20 and 40%.

In November of 2013, Phenoms hired a web development company to develop a full fantasy league hosting platform. This software development would eliminate the need for Phenoms to use Myfantasyleague, Fantrax, and ESPN to handle drafts, auctions, and league management. The idea was to deliver an excellent web experience. The developer’s estimate for the project was $200,000, an amount affordable to Phenoms, and was to be completed prior to 2014’s football season. So far, the project has exceeded $630,000 in development costs, and is still not complete (despite being several months behind schedule). It is Phenoms’ opinion that if the site had been completed in time and on-budget, Phenoms would have had no trouble meeting the financial commitments of the company and would continue to be a profitable operation for many years to come. Phenoms is weighing legal action against the developer.

In order to fix the problems caused by the delay in the site, Phenoms has conducted an extensive search to find interested investors to provide Phenoms with a capital infusion. Despite numerous meetings and serious discussions, Phenoms has not been able to secure funding. Barring any last-minute deal, Phenoms will be forced to sell off the software code that has been written and the player database to reduce the shortfall in prize money. If anyone has any interest in taking over Phenoms as-is or buying the software, please email me immediately. This is not an offer to sell or a solicitation of investment, merely a request for interested parties to contact me to learn more.

Before the end of the month, Phenoms will provide you with additional information regarding these matters. At that time, information will be made available regarding the claiming of prize money and deposits, the future of the dynasty/keeper style leagues, and the ongoing NBA and NHL leagues. It is expected that NBA and NHL leagues will be canceled with entry fees refunded. Dynasty/keeper league deposits may be refunded in full. You may email me with any questions or concerns. I will maintain open lines of communication throughout the winding down process.

As the owner and manager of Phenoms, I take ultimate responsibility for all that has transpired. You were counting on the prize money. You encouraged friends to join, putting your own reputation on the line. You have spent time managing and building your fantasy teams. I am deeply sorry that Phenoms has failed you. I can only ask for your forgiveness.

Sincerely,
Michael Zangrilli