Should the R.I. Gov’t Have Given Curt Schilling $75m for 38 Studios? [POLL]
Curt Schilling’s video game company is now insolvent and took a local state’s economy down with it.
In 2010, Curt Schilling was able to get $75 million in loan guarantees from the state of Rhode Island for his video game company 38 Studios.
The idea was that Schilling’s company, which would move from Maynard, Mass. to Providence following the transaction, would spark a new video game industry in Providence and add hundreds of jobs in Rhode Island.
However, Schilling’s company missed its first payment of $1.1 million at the beginning of May, was unable to make its payroll and shortly thereafter laid off the entire 38 Studios staff.
Its first video game sold about 1.2 million copies, according to reports, but its follow up game is a year away in production.
Though the saga continues, but it appears the former Boston Red Sox pitcher’s company will soon shut down for good.
Should Rhode Island’s Economic Development Corporation board have risked the money given the circumstances at the time, or was this just too big of a gamble?
Jim Rizoli
9:52 pm on Sunday, June 3, 2012
We shouldn't be bailing out business.
Jim@ccfiile.com
Dana Hall
7:52 am on Monday, June 4, 2012
Can we please leave the personal attacks out of here ?
The loan to Schilling's company was a bad idea. At the time his company had no product and no revenue stream. Just a hope to produce a video game in an overcrowded market. RI should have considered the fact that 9 out of 10 startups fail, and taken steps to minimize their risk & exposure. Did they get any kind of legal protection in the event of failure ? Did they negotiate to have rights to IP contained in the product or rights to the revenue stream ? No, it sounds like they wrote a $75 million check, with no strings attached, except promises that had no financial safegards.
It's not a good idea for govts to bankroll startups, as history shows that govt has a bad track record on picking winners. VC's bankroll lots of startup companies, in the hope that one huge success will outweigh the nine failures. So unless the govt plans on financing lots of startup business, it should stay out of the fray.
Just my $.02
Jim Rizoli
9:10 am on Monday, June 4, 2012
Dave....Are you off your meds?
Jim@ccfiile.com
Jim Rizoli
10:23 am on Monday, June 4, 2012
Dave.....Sue me ......LOL.......Go right ahead......and what would be the charge.....Hurt feelings... Stand in line.......there are many in front of you.
Maybe you all can make it a class action suite.
Jim@ccfiile.com
Danielle Horn
12:34 pm on Monday, June 4, 2012
Guys, we're not going to let this comment thread get off topic like similar polls have in the past. Feel free to continue commenting but only if it's related to the article's content. Thanks in advance for your cooperation.
Joe Rizoli
12:52 pm on Monday, June 4, 2012
It's not yours to give.
Government should not be bankrolling ANY company.
The Constitution provides situations for the public welfare, the public good. Giving taxpayers money for causes like this is UN Constitutional.
In an article called "notyours to give" about David Crockett, it's possible the story is like the story of George Washington cutting down the cherry tree, but the story itself about giving the people's money away is sound. What constitutes the general welfare of the taxpayers? I really doubt helping out a private company is Constitutionally appropriate. Unfortunately corporate greed and politics now seem to make good bedfellows.
Joe Rizoli