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| Love the hat, but aren't you a little old for that? |
Curt Schilling pulled a $75 million heist on RI taxpayers last year. He got us to front him that amount of money in a loan guarantee for his video game company, 38 Studios, which has never produced a video game. In return for our money, Schilling screwed Massachusetts and moved his company to Providence
Former Governor Don Carcieri did some sleight of hand and convinced the General Assembly to authorize the money, hidden in a $125 million bill that was supposed to mostly provide local small businesses with business capital, but nothing like what Schilling had in mind.
How is Schilling doing? When is his company going to finally release its first video game? And what are the odds that the game – and the company – will do well? Will we ever see our $75 million again.
Based on recent articles in the financial press, I think the chances that we’re going to get screwed out of $75 million are pretty high.
Earlier this month, the Wall Street Journal and Boston Globe ran extensive stories on Schilling’s desperate sounding efforts to raise more capital. Then Reuters jumped in.
In addition to the $75 million Rhode Island tax payers have fronted him, Schilling says he’s put, by various accounts, 20-$35 million of his own money into 38 Studios – though he has absolutely nothing to show for it.
I don’t understand why he can’t give an exact and consistent figure for his personal investment – I think even a rich, right-wing ex-ace pitcher should be able to accurately count the millions, especially since he’s also supposed to now be a business man.
Scott Kirsner of the Boston Globe said he could not determine how much Schilling needs to raise from venture capitalists. The Wall Street Journal reported that Schilling has said in the past that he needed $50 million to put out a high-quality multi-player on-line game – and he has already gotten that much and more from RI taxpayers.
Kirsner also reported that UBS has been circulating a “teaser” to venture capital investors saying that Schilling’s company might gross more than $100 million after its first game comes out (which is almost mathematically impossible by my calculations). But apparently he doesn’t have enough money to get the job done.
Reuters reported in an interview with Schilling that he said he “is proud that his company has no backing from venture capitalists” at the same time he is asking venture capitalists for money.
As for Schilling’s prospects at raising venture capitalist financing, the Wall Street Journal had this comment: “Privately, many venture capitalists that we talked to over the years about Schilling’s ambitious endeavor have rolled their eyes, saying they’d never invest in a hit-driven business.”
A lot of Rhode Islanders took a very big hit in this year’s state budget, especially low-income and working families, anybody who rides RIPTA buses, public employees, the elderly and handicapped, homeless people needing housing and so on.
It galls me – and I hope it galls you – to see this spoiled hypocrite take our money and to know we are letting him get away with it.
Author: Will Collette