Schilling Continues To Blame Rhode Island For 38′s Collapse

Readers of Game Front know that I am exceptionally skeptical of anything that comes out of Curt Schilling’s mouth regarding the spectacular failure of 38 Studios. I’ve no doubt he’s a likable guy, but every time he talks about the destruction of a business that will probably cost the state of Rhode Island hundreds of millions of dollars, he does so without ever appearing to acknowledge any responsibility for what happened.

In particular, Schilling loves repeating the claim that 38 Studios’ collapse is entirely the fault of Rhode Island’s government and specifically governor Lincoln Chafee. In his version of events, Chafee villainously revealed to the world that 38 Studios was incapable of repaying the huge loan it received from the state. Supposedly, they were *this close* to securing additional funding, until potential new investors learned of these unfortunate facts and balked.

It doesn’t make any damned sense to me either, but it’s the line the company, or at least Schilling, is sticking to. And he’s done it again, this time in an interview with Boston Magazine in which Schilling insists that prior to May 15, they were confident that a life saving infusion of investor cash was imminent. Schilling states that Nexon, and an unnamed Chinese Company*, were both interested. Nexon declined to comment, of course. Of greater interest is Schilling’s claim that Rockstar and 2K parent company Take Two was “close to a pact” with 38 Studios to produce a sequel to Kingdoms of Amalur.

Take-Two doesn’t sound particularly willing to confirm Schilling’s claim. “We do not comment on rumors and speculation,” they said in a statement, suggesting that Schilling may have grossly exaggerated the extent of Take-Two’s interest. Meanwhile, Schilling himself admits in the interview that the company was fully aware of their inability to fulfill their most basic contractual obligations to the state of Rhode Island. Yet he continues to lay his company’s collapse at the feet of the man who had the bad manners to actually call them out on it.

Frankly, Schilling needs to read “The Emperor’s New Clothes” and reflect long and hard on the meaning of the story. In the meantime, I await with baited breath the results of the ongoing investigation into 38 Studios. I am willing to bet right now that the results of that investigation do not support Schilling’s version of events. In the meantime, I’ll ask the same thing I always do when this pops up in the news: What the hell did 38 studios do with all that money? So far, they haven’t even bothered answering that question to anyone’s satisfaction. Until they do, I’m taking “it was everyone else’s fault” with a lot of grains of salt.

Via VG 24/7

* Anyone want to bet he’s referring to Tencent Holdings?

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5 Comments on Schilling Continues To Blame Rhode Island For 38′s Collapse

R.J.

On July 24, 2012 at 8:18 pm

I remain curious to see how this turns out. A lot of it is rather bizarre, and I’d like to see what really happened since it’s so much money.

X3n0s

On July 24, 2012 at 10:00 pm

I bet they spent all the money on hookers and cocaine…..

CatmanStu

On July 25, 2012 at 4:39 am

I’m not defending Kurt Shilling or villifying Ross Lincoln when I say this but I have got alot of debt for no other reason than I was offered loans I couldn’t possibly repay and was naive enough to accept them. I am completely aware of my burden of responsibility in this matter but to ignore the bankers who lent the money would be equally naive; as such I believe KS has every right to bring attention to Lincoln Chafee’s statement as, to my understanding, he was responsible for okaying the loan in the first place. It seems to this casual, outside observer that KS’s only mistake was trying to build a gaming house of cards and if all involved had looked hard enough they would have seen it was doomed to failure.
Also, I always thought that when a company issue a “We don’t comment on rumours” statement, it meant you are too close to the truth rather than the opposite.

Ross Lincoln

On July 25, 2012 at 7:53 am

The loans happened before Chafee took office, and he opposed them during his campaign.

Ross Lincoln

On July 25, 2012 at 7:54 am

Adding that it was the Rhode Island Economic Development Corporation who approved the loan. Further, whatever the circumstances, you sign a contract, you have to pay when the time comes. If 38 Studios finances were so shakey that merely mentioning they were late on their payments caused their collapse, that’s hardly Rhode Island’s fault.

In addition, the loan agreement was made over 2 years ago as part of the RIEDC’s mandate to bring jobs to the state. Chafee opposed the loan, but it’s entirely possible that at the time, 38 felt confident they’d be able to make their scheduled payments. The question is, how did they manage to burn though tens of millions of loan and investor dollars to the point they couldn’t even meet their payroll obligations by the time they needed to start making their payments to Rhode Island? Not a single person associated with 38′s management has adequately answered that question.

Personally, I think we’re going to learn about some corruption at the RIEDC before this is over, and while I’m loathe to admit it (I’m NOT a fan of Lincoln Chafee), Chafee is going to be completely vindicated.

Also, I didn’t take your comment as a dis, so fear not. :)