Curt Schilling Bounces $1 million check to state of RI

[weemadando]

Plenty of non-games (aka real) journalists looking into this have been saying that as more and more comes out it's looking more and more like a Ponzi scheme business plan being run by the upper management. They knew there was no way to hit the sales targets they'd talked about, but kept on spinning the lies and growing the company to pull in more and more money.

[Civil War Man]

I'd be surprised if Curt suffered any major financial setbacks as a result of this. Not that he doesn't deserve it, but all too many situations like this end up with flunkies and low level employees bearing the brunt of the legal and financial consequences while the people responsible for the fiasco get off either with a slap on the wrist or completely scott free.

He's pretty thoroughly burned his bridges in RI, though. At this point even if he brought every single sports championship from the America's Cup to the World Series to New England, and his bloody socks cured two different kinds of cancer, a lot of Rhode Islanders probably wouldn't even give him the time of day.

[Col. Crackpot]

I'd be surprised if Curt suffered any major financial setbacks as a result of this. Not that he doesn't deserve it, but all too many situations like this end up with flunkies and low level employees bearing the brunt of the legal and financial consequences while the people responsible for the fiasco get off either with a slap on the wrist or completely scott free.

He's pretty thoroughly burned his bridges in RI, though. At this point even if he brought every single sports championship from the America's Cup to the World Series to New England, and his bloody socks cured two different kinds of cancer, a lot of Rhode Islanders probably wouldn't even give him the time of day.

Shilling now has the balls to blame the state for sinking his business now. Because we didn't hand him additional tax credits (that he wasn't eligible for because he is incorporated in Delaware) he failed. Fuck him and bloody sock wearing high horse. As a matter of fact he should pawn that goddamn sock to pay his debts. Deadbeat hypocrite.

[Civil War Man]

Beyond the hilarity of the mental gymnastics trying to comprehend the reasoning behind blaming the state for the check (which he was using to pay the state) bouncing because the state did not give him even more money to not pay them back with (because, remember, the check bounced), that is one of the sure-fire ways to get the general population rallied against you.

In my experience, Rhode Island has a more closely-knit culture than most other states, and Rhode Islanders know how to hold a grudge. They will complain about wastefulness and corruption to anyone who will listen, but loudly and publicly bad-mouthing the state after causing a major budget crisis right in the middle of the state trying to deal with a pre-existing budget crisis has earned Curt Schilling a spot on RI's permanent shit list right next to Massachusetts Puritans, British tax collectors, and Great White.

[FSTargetDrone]

Fortunately, despite all of his troubles, Schilling keeps finding the time to post inspirational messages and Bible verses on his Facebook page. He's getting it with both barrels there from all kinds of people who aren't holding back with their outrage. He just put up some more screenshots from his aborted project, too.

[Col. Crackpot]

Fortunately, despite all of his troubles, Schilling keeps finding the time to post inspirational messages and Bible verses on his Facebook page. He's getting it with both barrels there from all kinds of people who aren't holding back with their outrage. He just put up some more screenshots from his aborted project, too.

Delusional fuck. The state should hire some 'debt collectors' from Federal Hill .to 'recover some assets'

[FSTargetDrone]

Delusional fuck. The state should hire some 'debt collectors' from Federal Hill .to 'recover some assets'

Well, there's this:

RI hires auditor to probe Schilling firm finances

By David Klepper

Associated Press May 30, 2012

PROVIDENCE, R.I.—Rhode Island has selected an outside auditor to review the finances of former Boston Red Sox pitcher Curt Schilling's troubled video game company.

Deloitte Financial Advisory Services will conduct the audit, Gov. Lincoln Chafee announced Wednesday.

The audit's parameters have yet to be determined, but Chafee said he wants it to explore how 38 Studios spent its money and whether any of it went to Schilling.

"There are a lot of questions still out there," Chafee said.

38 Studios, which was lured to Rhode Island from Massachusetts in 2010 with a $75 million loan guarantee from the state's Economic Development Corp., laid off its entire work force last week, including about 300 employees in Providence and more in Maryland. The state would likely be responsible for some of 38 Studios' debts should it collapse.

The 2010 financing deal requires 38 Studios to pay for the audit. State officials said the cost would depend on the scope of the audit.

Calls to Schilling were not immediately returned Wednesday.

The firm's financial troubles came to light this month when it defaulted on a $1.1 million payment to the EDC that was due May 1. The company later paid - but only after first delivering a check that it acknowledged soon after would not clear.

Chafee also announced Wednesday that another member of the EDC board has agreed to step down. The latest resignation comes from board member Stephen Lane. Chafee said he is seeking the resignations of board members who supported the loan guarantee.

"I think we need a fresh start," Chafee, an independent, said of the board.

Board Vice Chairwoman Helena Foulkes, board member Lynn Singleton and EDC Executive Director Keith Stokes - a vigorous backer of the guarantee - have already resigned.

Calls to Lane were not immediately returned Wednesday evening.

Anyway, it's interesting to see a few of 38 Studios' (former) employees coming to Schilling's defense on his Facebook page. I want to know they are sticking up for this guy, considering how he fired them all with no real warning. As someone else referenced earlier, it is illegal to lay off everyone in a company without 2 months' notice:

Under federal law, employers who have at least 100 employees and plan to shed at least 50 jobs are required to give a 60-day notice to workers and state unemployment officials.

This was evidently not done correctly.

[mr friendly guy]

It seems 38 studios is worth only $20 million on estimates.
linky

it gets worse for the employees it seems

38 Studios continues to give bad news to some of to its now ex-staff members. The game developer who released the fantasy RPG Kingdoms of Amular: Reckoning in February, and then laid off over 300 staff members earlier this week, has now apparently not sold some of the former homes of staff members who moved to 38 Studios' home base in Rhode Island as promised.

The report was first announced by The Verge. This program of selling off homes was apparently part of 38 Studios' relocation program for some of its staff members. Now the banks are telling those same members they now have a second mortgage to pay. An unnamed 38 Studios official is supposedly trying to find some kind of solution for this new issue. It's unknown how many 38 Studios employees are affected.

This development is just the latest in the 38 Studios saga, which began unfolding earlier this month when the developer found itself running out of money and unable to make a payment for the massive $75 million loan it was given by the state of Rhode Island in 2010. While the studio finally did make the payment, it wasn't enough to prevent the layoffs this week.

There is a bit of good news for some of these employees. Many of them will likely be rehired, either at another game developer or a tech company. A Google Docs page has been set up for ex-38 Studios members where a listing of available game development jobs are found.

And what about Curt Schilling, the former Boston Red Sox pitcher who founded 38 Studios, and reportedly also spend $30 million of his own money to launch the company? Aside from a few posts on his Twitter and Facebook accounts praising his now ex-team members, Schilling has been publicly silent about what happened to 38 Studios.

[bilateralrope]

It seems 38 studios is worth only $20 million on estimates.
linky

I'll just quote that article

The recent problems that have hit 38 Studios, the creator of Kingdoms of Amalur: Reckoning, could be solved by selling the intellectual property that the developer has put together, which is evaluated at 20 million dollars (15.9 million Euro).

Michael Pachter, who watches the video game industry for Wedbush Securities, believes that despite the value of the brand and the potential of the Copernicus MMO that is based on the same game world, it will be hard for 38 Studios to sell it off.

The analyst believes that the relative lack of success of the Star Wars: The Old Republic means that no company is interested in buying the project for another MMO.

Pachter added, “There is just no demand for game assets right now, as THQ proved when it tried to sell the Warhammer MMO. I think EA could step in, since they are the publisher, so you might see some alternative way to get 38 some bridge financing.”

Jeff Brown, who is the leader of corporate communications for Electronic Arts has told Joystiq that, “We don’t have any new announcements to make regarding 38 Studios. We enjoyed working with Curt and his team on their first game, Kingdoms of Amalur: Reckoning. Like game fans all over the world, we look forward to what 38 Studios creates next.”

38 Studios has not managed to pay its employees since the start of May and the company has also had trouble paying the money it owed to the state of Rhode Island.

The problems are linked to the lack of success of Kingdoms of Amalur: Reckoning, which was launched earlier during 2012 and has failed to sell well.

The developer was planning to use the revenue and the recognition derived from the action role-playing game in order to create an ambitious MMO project, codenamed Copernicus, which was set to use the same game world.

How is an IP that has had a single product, a game which didn't earn a profit for its developer, worth 20 million ?
I didn't see anything interesting about the KoA setting in the demo.

Also, isn't the IP the collateral for Rhode Island backing the loan, meaning it can't be sold ?

[mr friendly guy]

From previous articles I read, the 20 million includes "private property" as well as the IP. Which may potentially mean a game company can get the IP relatively cheaply.

And just to confirm what everyone knew was going to happen, 38 studios have filed for bankruptcy.

here is an article on the bankruptcy

Bankruptcy and liquidation may have been a foregone conclusion, after Curt Schilling's video game company 38 Studios laid off all its employees, last month. But 38 Studios' Chapter 7 filing, dated Thursday, provides a view into the company's assets, and the creditors it may leave hanging.
Rhode Island and federal law enforcement officials are undoubtedly poring over the filing, as they launch an investigation into the company's finances and actions of its executives. More than just dollars, political reputations are at stake. 38 Studios' creditors range from the state of Rhode Island, owed over $50 million, to individual employees, each owed thousands in wages that went unpaid during 38 Studios' chaotic wind-down.

Assets, valued at just over $20 million, include software the company used to develop its video games, as well as unorthodox items like underwater mortgages that remain on 38 Studios' books after the company helped employees move to Rhode Island without taking a bath on their home sales.
Intellectual property associated with a partially developed video game remains a giant question mark on 38 Studios' balance sheet. The company spent millions to create a fictional universe for its forthcoming fantasy video game title, dubbed Project Copernicus. It remains to be seen whether any white knight will emerge who seeks to further develop those assets.

One of the most interesting threads in this tapestry are seven mortgages on Massachusetts homes. 38 Studios assumed responsibility for paying those mortgages when it relocated employees from Massachusetts to Rhode Island in 2010. A relocation services company hired by 38 Studios told the Boston Business Journal the move was designed to support employees whose home values had fallen when the housing bubble burst.

Some 38 Studios employees based in Maryland, who joined 38 Studios with the company's 2009 acquisition of the developer Big Huge Games, will join a new, Baltimore office of game developer Epic Studios, Epic announced this week. That, according to the video game blog Joystiq, makes it unlikely the world will see a sequel to "Kingdoms of Amalur: Reckoning," the only title 38 Studios brought to market.

Schilling, a former Boston Red Sox pitcher, last month told the Providence Journal he personally stands to lose $50 million of his own fortune, if 38 Studios fails.

Its a shame there isn't looking like a sequel to KOAR, as I would personally buy it.

[General Zod]

Its a shame there isn't looking like a sequel to KOAR, as I would personally buy it.

It's a fun game, but holy bloody hell is it obscenely long, I have to wonder how much of their budget they spent making a fuckton of sidequests.

[DPDarkPrimus]

There's no reason to do all the sidequests, as you can reach max level easily just doing the stuff there are achievements for. Even quicker with the DLC. I was impressed with the amount of content they put into the game, but eventually it just becomes "okay enough is enough".

[General Zod]

There's no reason to do all the sidequests, as you can reach max level easily just doing the stuff there are achievements for. Even quicker with the DLC. I was impressed with the amount of content they put into the game, but eventually it just becomes "okay enough is enough".

I've started ignoring most of the sidequests, but I bet if they'd cut the amount in half they wouldn't have been nearly as over budget as they were.

[mr friendly guy]

Most of the over budget I thought was from the MMORPG development, rather than KOAR per se. To be fair I heard it said they needed 3 million sales to break even (break even for what, the game itself or to cover the MMORPG regular development costs).

Any way, the second time round I was playing KOAR I ignored most of the side quests, focussing on the main quest and only faction (side quests) as I get bonuses. Since I am better with the combat system, I tend to play on difficulty now and dress my character according to the rule of what looks cool, rather than the rule of maximising statistics.