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Schilling: Investor for Reckoning sequel pulled out over “devastating” comments made by RI governor

Tuesday, 29th May 2012 15:18 GMT By Stephany Nunneley

Curt Schilling has told The Providence Journal he could end up losing $50 million of his own money due to his studio’s failure, furthermore claiming comments Rhode Island governor Lincoln Chafee made regarding the firm were “devastating,” and “scared off private investors.”

Schilling said he invested $50 million of his person fortune into the studio, and $50 million of a planned $75 million loan which was co-signed by Rhode Island was thrown into development Project Copernicus – confirming comments made by a source close to the matter yesterday.

Schilling also confirmed yesterday’s rumor that a sequel to Kingdoms of Amalur: Reckoning was in the works with a private investor on board for it. However, due to the governor’s comments, the investor dropped out of the deal, taking its $35 million with it.

He also told the paper that state economic-development officials “reneged on a deal to approve film tax credits,” which he said 38 Studios was legally entitled to which would allow the firm to defer the $1.12-million payment due the state on May 1. Because of this, the studio was unable to pay its employees and ended up laying off 291 employees in Rhode Island and 100 others in its Maryland office.

Thanks, Joystiq.

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9 Comments

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  1. DSB

    Saying all of that in the press doesn’t really mean anything.

    If the governor has screwed you on a deal – Sue.

    If the governor has slandered your business – Sue.

    How does Rhode Island feel about millions of dollars in tax money being spent on games development?

    #1 2 years ago
  2. ManuOtaku

    DSB i dont agree with you on the part you stated “Saying all of that in the press doesn’t really mean anything”, i think is a good thing to inform those things in order to prevent from happening again, special for small developers out there, i dont know to much about this, but i got the feeling the Rhode Island government department didnt handle this case well alongside with the developers, therefore is a good thing he comments his point of view, in order to let people have a clear picture of the issue, information is not a bad thing IMHO.

    #2 2 years ago
  3. DSB

    So, what kind of insight do you have in this case? Are you familiar with the workings of the Rhode Island administration? There aren’t any facts here. Just a guy in front of a microphone, who stands to lose an awful lot of money.

    That’s really the problem. The only way you would get that information is in a court case. And generally, if people stick to argueing their points in front of a microphone instead of a judge, then it probably means that they don’t have a lot to go on. By all accounts, at least until he graduates from talk to action, Curt Schilling is just a less than astute entrepreneur who took a smile for a promise. And a smile from a politician, no less.

    I think the interesting bit here, one that is actually based on fact, is how Rhode Island uses taxpayers money. By all accounts Big Huge Games was funded by the state of Rhode Island, with the taxpayers as majority investors.

    Is that really considered a good way to spend peoples money? Games are a high risk industry, and they blew close to 100 million dollars on a single studio. A single studio. 291 high tech jobs. Which are now gone, along with the money.

    What if they had cut that into 5 pools of 20 million dollars incentivized for any games studio or high tech business, that would consider settling in the state of Rhode Island? I reckon they could’ve had at least double the return on their investment, with far less risk. Bad government seems to be the story here.

    #3 2 years ago
  4. ManuOtaku

    So, what kind of insight do you have in this case? Are you familiar with the workings of the Rhode Island administration?

    No i dont have, thats why i indicated “i dont know to much about this”, i just try to point out is not a bad thing hearing his part of the story, as much as fault he has in this issue, Rhode Island has its share of fault too, like a marriage, the fault is not entirely of one part alone, is a thing of two, thats was my point, really, and if knowing his part of the story can prevent things like this happening in the future to small teams, i dont see the bad in it, but if you think that way, great man is your opinion and i respect it.
    p.s besides people should be inform, not to only have this info available in court like you rightfully mentioned, because much of the time, people do not have access to the court details and info.

    #4 2 years ago
  5. DSB

    Not trying to bust your balls or anything. I don’t mind the guy talking, but that’s really all it is: Talk.

    You have to realize that he has as much to gain by twisting the truth as Rhode Island does. A company failed, and both of their reputations are on the line. Until you have a verdict by an independent judge, or someone brings some data to shine a light on it, you’re really not any wiser on what actually happened.

    Especially not coming from either of the two parties. You can compare and you can guess, but it’s just talk.

    Personally I think it’s common sense never to rely on someone else for survival, in business more than anything. The fact that Schilling apparently did in this case doesn’t really endear him to me, but I don’t think that’s much of a story. Rhode Island apparently gambling quite recklessly with tax dollars, is.

    Either way, talk proves nothing.

    #5 2 years ago
  6. ManuOtaku

    DSB i prefer to know each side of the story, with all the info i can get, and then make my own conclusions, and i think a lot of people does, because courts in the end most of the time, rule what is legal, but not what is right, you know for the thing the people who created the law also created the loopholes, you believe in courts and justice, i respect that, i believe in the information given by all the parts involve and made my conclusions, of course talking with others, and taking their point of view, something like a brain storm, than it is in my opinion more closer to the real thing that courts.
    For me while talking you know who lies and who doesnt with crossed check information.

    #6 2 years ago
  7. DSB

    But this isn’t the story. It’s Curt Schilling, a guy who has lost 75 million in a very public way, diverting the blame to the other major investor in the same business.

    People can be fooled in any number, they don’t require data, they aren’t obligated to follow any methodology in substantiating their beliefs, and they have the luxury of ignoring their doubt whenever it’s convenient.

    If a judge has any doubt, he has to let me go.

    For that, I prefer a judge.

    I don’t believe that very many of the judges serving in the US today have been instrumental in writing any of the laws they enforce. A select few have set legal precedents, which serve as de facto law in the US, and exactly nine serve on the supreme court, who may overrule those.

    I don’t see how any random citizen can really provide me with something more impartial than that.

    Until someone actually bothers to investigate this, and try to substantiate some of those claims, then all you have is a bunch of people, all with their nuts in a vice, saying things that you have no way of judging properly.

    Belief does not equal truth. What you think you know, is what you think you know. Unless you can prove it, it’s just a thought.

    #7 2 years ago
  8. Kabby

    He has $50 million of his own fortune to lose? Not a fuck was given by the people.

    #8 2 years ago
  9. Phoenixblight

    @8

    RI and Curt had put in money into developing this game. so It became 100 million for KOA which for that price for development does not show it.

    #9 2 years ago