Curt Schilling acts like we’ve all forgotten the time he spent $75 million of public funds on an MMO that never came out
Former 38 Studios head Curt Schilling, whose studio took $75 million in loans from the state of Rhode Island in 2010 and then laid off all of its employees and declared bankruptcy two years later, has criticized the cancellation of US student loans. (opens in a new tab) plan, stating on Twitter that “irresponsible uneducated children [are] to be covered with hard work Americans paying the debt (opens in a new tab).”
Schilling, who earned tens of millions of dollars as a young man thanks to his ability to throw a ball well, was a fan of MMOs during his MLB playing days (especially EverQuest – in fact, he reviewed a few extensions from EverQuest for PC Gamer magazine, a long time ago).
My body my choice? Is your loan my responsibility? It’s not debt forgiveness, it’s a generation of lazy, uneducated children who are covered by hard-working debt-paying Americans.August 25, 2022
So he decided to try his hand at making video games when he was done with baseball, and with virtually unlimited fame and fortune at his fingertips, he started Green Monster Games, later renamed 38 Studios. – the first referring to the gigantic wall in left field. at Fenway Park, home of the Boston Red Sox, and the latter his jersey number.
38 Studios was founded in Massachusetts in 2006, but moved to Providence, Rhode Island a few years later, lured by a $75 million loan guarantee offered by the state’s Economic Development Corporation. It was a lot of money, but not enough to cover the studio’s outsized burn rate. After defaulting on loan payment and failing to make payroll, studio filed for bankruptcy (opens in a new tab) in May 2012 and fired all of its staff, many of whom had moved at great expense to work at the studio, with a mass email.
Litigation soon followed: Rhode Island sued just about everyone involved and was eventually able to recover $61 million. (opens in a new tab), even though legal fees consumed $11 million; Rhode Island taxpayers had to foot a bill of $39 million, plus an additional $12.5 million to cover the final bail payment for the 38 studios.
Rhode Island’s EDC also encountered problems following the collapse. It has been instructed by the United States Securities and Exchange Commission (opens in a new tab) with fraudulent investors through the bond offering, because he did not tell them that the amount loaned to the studio would not be enough to complete the game project. Only $ 50 million of the bond of $75 million would go to the studio, while the rest was kept to cover various related expenses. The state eventually agreed to pay $50,000 to settle the lawsuit. It really was a wall-to-wall shit show.
I don’t think the SEC accusation makes Schilling look any better, but it’s his preferred response to accusations of hypocrisy.
Electing idiots and cheats like you, that’s how it goes. Check the SEC idiot. See who they convicted of fraud. Hint: it wasn’t me.August 25, 2022
The collapse of Schilling’s 38 studios not only left the state of Rhode Island stuck with a multi-million dollar bill, it also threw the company’s staff into chaos. Some who took advantage of 38 Studios’ relocation program found that the company had not sold their old homes as planned and they were now on the verge of getting a second mortgage. (opens in a new tab). Schilling himself claimed that he had been “used (opens in a new tab)financially after investing $50 million of his own money in the studio, although he eventually agreed to pay back $2.5 million to settle his part of the Rhode Island lawsuit.
38 Studios sent the last paychecks to its employees in 2021, just under a decade after the studio went bankrupt, but the checks only covered a small percentage of what the employees were actually owed.
The 38-studio debacle isn’t Schilling’s only failed post-MLB venture. In 2016 he was fired as an analyst on ESPN (opens in a new tab) for transphobic comments he posted on Facebook, which followed a suspension (opens in a new tab) for sharing a meme comparing Muslims to Nazis.
Either way, Curt Schilling thinks people who default on their loans are lazy profiteers.
They’re not going to go after the banks. They will simply write checks to profiteers. They have no legal power to force the banks to cancel their debt. Look at corruption too.August 25, 2022