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Here's the cliff notes version. Curt Schilling, who's a big gamer, started a video game company. It was originally based in Boston, but received a $75 million loan guarantee from the state of Rhode Island (more technically, the Rhode Island Economic Development Corporation) in exchange for moving to Providence. On May 1st of this year, Schilling's company, 38 Studios, missed a $1.12 million payment.
Rhode Island called an emergency meeting, and RI Governor Lincoln Chafee met with Schilling and other 38 Studio execs. The state thought the meeting would be a briefing on how 38 plans to repay the state, but Schilling flabbergasted everybody by saying they couldn't pay, and that they needed more money from the state. Here's the media ambushing Schilling after the meeting:
This became a big deal in Rhode Island, because if 38 Studios goes under, Rhode Island will be on the hook for $112 million (including the principal, plus interest). Schilling said that 38 Studios would pay its bills, but they also laid off all employees, putting something like 300 people out of work. Some RI politicians wondered why Schilling, a millionaire retired baseball star, would need to beg for money from the state, and Schilling responded this week by saying that he's invested $50 million of his own money into the company. Schilling is also insisting this week that the way RI has handled this missed payment has completely sunk his company.
It's just a crazy story and it's sad that Schilling's image will be tarnished by this disaster, regardless of how you feel about government getting involved in a private business. Got to feel sorry for all the folks out of work too.
The Providence Journal has been covering this wall-to-wall if you want any more updates.
Here's the cliff notes version. Curt Schilling, who's a big gamer, started a video game company. It was originally based in Boston, but received a $75 million loan guarantee from the state of Rhode Island (more technically, the Rhode Island Economic Development Corporation) in exchange for moving to Providence. On May 1st of this year, Schilling's company, 38 Studios, missed a $1.12 million payment.
Rhode Island called an emergency meeting, and RI Governor Lincoln Chafee met with Schilling and other 38 Studio execs. The state thought the meeting would be a briefing on how 38 plans to repay the state, but Schilling flabbergasted everybody by saying they couldn't pay, and that they needed more money from the state. Here's the media ambushing Schilling after the meeting:
This became a big deal in Rhode Island, because if 38 Studios goes under, Rhode Island will be on the hook for $112 million (including the principal, plus interest). Schilling said that 38 Studios would pay its bills, but they also laid off all employees, putting something like 300 people out of work. Some RI politicians wondered why Schilling, a millionaire retired baseball star, would need to beg for money from the state, and Schilling responded this week by saying that he's invested $50 million of his own money into the company. Schilling is also insisting this week that the way RI has handled this missed payment has completely sunk his company.
It's just a crazy story and it's sad that Schilling's image will be tarnished by this disaster, regardless of how you feel about government getting involved in a private business. Got to feel sorry for all the folks out of work too.
The Providence Journal has been covering this wall-to-wall if you want any more updates.
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