Ever since 2010, I did not think a developer could rattle my nerves as much as Cheyenne Mountain Entertainment and Gary Whiting, but 38 Studios and Curt Schilling are certainly looking to prove me wrong on all accounts. For the taxpayers of Rhode Island, the investment made by their state government by offering $75 million to 38 Studios to relocate and bring 450 jobs to the state, has turned into a nightmare. At this point in time if 38 Studios goes bankrupt, taxpayers will be on the hook for $112 million over the next eight years. Two days ago I reported that Governor Chafee had met with Curt Schilling to discuss keeping the company solvent.
Now we know that 38 Studios did not make its loan payment on May 1st. The Associated Press is reporting that Curt Schilling is now asking for more money from the state, although the amount has not been disclosed to the public. Governor Chafee, who did not support the loan citing 38 Studios’ lack of a successful release record, has committed to protecting the state’s investment and securing the taxpayer money, but has not responded to the request for additional funding.
While the loan doesn’t come directly from the taxpayer coffers, the agreement set up with 38 Studios means that Rhode Island will pay the lenders in case the studio defaults. So if 38 Studios loses, everyone in Rhode Island is going to pay for it.
We’ll have to wait and see as to what happens.
(Source: Associated Press)
MMO Fallout 