Curt Schilling’s video game company was the one that got away - and as it turns out, maybe that is OK. The former Red Sox pitcher moved his company 38 Studios LLC from Maynard to Providence last year after Rhode Island officials offered him $75 million in loan guarantees. Now Schilling’s company appears to be in financial trouble, and officials are scrambling. The state called an emergency meeting Wednesday to “to protect the public regarding the 38 Studios, LLC financing.’’
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Comments
There were people wringing their hands and flinging insults at the governor and his administration when Schilling moved to Providence. But there were also people who suspected this was a bad deal for Rhode Island. Things aren't looking so good, but I guess is still too early to hang the black crepe. I'm glad it's them and not us.
This brings to mind a few thoughts: 1) I thought Curt was a Republican. I guess government is OK if it benefits him, though. 2) Maybe, just maybe, Curt, you don't know everything about everything. 3) Can't wait until Shaughnessy gets ahold of this.
Just another conservative con-man eating at the public trough when it suits his "Conservative Ideals."
Hypocritical loser. 1. Save taxpayer money at all costs - don't give ANY to those who WORK HARD for a less than livable wage ... but bail ME out with millions because I thought I knew everything about everything. 2. Find a cure for ALS ... but vote Republican so we can stop funding stem-cell research ... find a cure as long as it doesn't effect his tax cut!
As I remarked on the article about Schilling that appeared in yesterday's article, the hypocrisy on the part of the GOP in Rhode Island is stunning. For years the GOP has preached that government should stay out of getting involved in the economy on the grounds that government is inherently incompetent at being able to pick winners in the marketplace. But when a high profile Republican like Curt Schilling comes along and asks for taxpayer guaranteed loans to set up shop in Rhode Island the GOP governor said sure, take what you want. If this company goes under, Rhode Island taxpayers are going to be left holding the bag. Curt Schilling will, no doubt, end up making like a bandit, regardless of what happens to his company.
Obviously more to this story. How can't they make an interest payment when the state set up a $23 million reserve for paying interest? Then there's the million unit sales at $60 each. Doesn't make any sense. I heard that Schilling paid back $4 million that he had put in with the $50 million proceeds. Amazing that RI would let him do this. The guy's got no skin in the game and pushed all the risk to the state. Who negotiates these deals? Much like the train wreck Evergreen Solar in MA.
I know nothing about VGChartz, but 1 million is far from a precise number. I suspect sales were considerably lower. In addition, it's likely that many or most of the early shipments were at a substantial discount to get themselves listed on dealer websites. The company existed in Maynard since around 2006 and is just getting a product out the door, so overhead for this first game must be extremely high.