Friday, May 18, 2012

‘Small-Goverment’ Schilling’s Biz Goes Bad, Asks Rhode Island For More Taxpayer Cash

TPM

Curt Schilling is a hero to New England baseball fans, known for his performances in high pressure situations. But as a businessman, he’s in big trouble, and not the kind he can pitch his way out of.
The former MLB all-star’s start-up video game company, 38 Studios, missed a $1.1 million payment to the state of Rhode Island on May 1, and things have only gotten more complicated since.
Rhode Island lured 38 Studios away from Massachusetts in 2010, in exchange for $75 million in guaranteed loans. At the time, then-Governor Donald Carcieri, a Republican, considered the company a chance to jump-start a new business sector in the state. The company promised to create 450 jobs in three years. Massachusetts officials declined to match Rhode Island’s offer. Earlier this year, the company’s first game, “Kingdoms of Amalur: Reckoning,” came out to positive reviews. “It sings with infectious, engaging excellence,” raved The New York Times.
But the company missed a payment earlier this month, and Schilling was forced to ask for more public assistance this week, The Boston Globe reports. The company said it did not have enough money to make payroll for its nearly 300 employees. The Rhode Island official who oversaw the loan guarantee resigned on Wednesday. And the troubles reached an absurd high point on Thursday, when the company hand-delivered a check to the state for $1.1 million before warning that it didn’t have the funds to cover it.....................

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