Schilling denies using loan to pay himself, says 38 Studios will endure

XMNR: 38 Studios found and ex-Boston Red Sox pitcher Curt Schilling made a rare public statement on Friday since it was first reported earlier this week that the studio missed a payment on a $75 million loan from the state of Rhode Island.

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joab7772314d ago

This is why government should never be allowed in the private industry. Imagine if a start up company got a loan from tje government to make swtor. They wouldnt be able to make oayments for years, until the product released. How did they expect 38 to generate revenue before the product was finished?

Obviously i dont think shilling should touch the money until after the loan is paid. And as far asbthe workers, how do they pay loan paymenta and workers while generating no revenue. As far as i know kingdoms was not made with that money.

jetlian2314d ago

Kingdoms was to start the payment off duh. Question is how did they spend 50 million in such a short time?

Most likely it was an underhanded deal like most involving the gov. People who set it up are paid while state tax payers recoup. And if I was one of the workers that didnt get paid bodies would be flying!

Queasy2314d ago

When you've got around 300 people on the payroll, it doesn't take long to burn through $50 mil. They're annual payroll alone is around $20 mil. Throw in building leases, tech purchases, etc and you've got a huge burn rate.

joab7772312d ago

Even if kingdoms made enough to cover the first payment, then what? Why even make an agreement that seems so unreasonable. But i dont know everything. The $ shouldnt have been offered or accepted and the repayment schedule is a bit crazy.

Let private companies invest in games. Let government worry about the little they have constitutional power to do. Very few states are running successfully as it is. They should stick to that which they already know how to screw up. I shoulda known that if the state was involved, 38 was doomed to fail. Though i still do hope they succeed..i really do.

mananimal2313d ago (Edited 2313d ago )

The Govt & Corporate Worldwide as just different sides of the same coin when you strip away the social dogma that consumers are fed by the media, so again, who's getting screwed? the consumer/ or employee as usual.

chasegarcia2314d ago (Edited 2314d ago )

Rhode Island took a gamble. No payment is one of the risks.