With a resume like that what could possibly go wrong.
-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
Curt Schilling's "38 Studios" in trouble, skips payroll, bounces check to RI
- Thread starter jbug617
- Start date
- Status
With a resume like that what could possibly go wrong.
It would be a terrible solution and a terrible precedent.
Here in Canada the government will help you start a small business, which means tax dollars. Now starting a business comes with a LOT of chances of failure and it would be a terrible program if you could get stuck with it.
Now in terms of the money itself I think that is a huge problem... a new studio should be aiming to sell MAX 500K copies (new studio, new IP, people will adopt a wait and see attitude in the generation where games go 'bomba'. Before games had legs, not how it works anymore *I think yearly releases is helping that though*)
Its a shame but it shows you need to be grounded in reality.
Hope it works out, maybe downsize a bit or something who knows, it is definitely a shame it didn't turn into a massive hit (as I said in my last post; they got a lot right but forgot to make it fun)
If they downsize, they incur penalties for being below the mandated employee count in the loan agreement. Of course, it's possible they could try to renegotiate that agreement.
They've released zero games. Reckoning was produced by Big Huge in Maryland, which has nothing to do with this.
Pretty cute, lol.
I'm a centrist liberal but I don't know how I'd feel about my money going to fund videogames. Kind of funny about Schilling's teaparty affiliation, and then using tax money to fund his game projects, is this the reason why a few people earlier in the thread was saying the guy was a d-bag?
B_Rik_Schitthaus
Banned
Baconsammy
Banned
I hope someone buys BHG. They made a pretty good game that could have been great with a better story and time taken to balance the difficulty. 38 hasn't done a thing, though, except fail to make an MMO.
Ninja Scooter
Member
Do you guys want to hear the truth? Or do you want to hear about the bloody sock!!
B_Rik_Schitthaus
Banned
This isn't true. 38 hasn't stolen any taxpayer dollars to date. Taxpayer money won't be "taken" unless the company goes under.
I think this situation just needs to play out, honestly. This thread is full of dOOOOOOM sayers and stuff. People just need to step back until we have some more solid facts. Although, things aren't looking that great right now, I must admit.
Jive Turkey
Unconfirmed Member
I get the feeling those were butthurt Yankees fans. Though for me personally I'm not a fan strictly due to his outspoken and often hypocritical political views.
Fine Ham Abounds
Member
Yeah, I'm staying out of the political irony bit, amusing or not. I don't disagree this issue is steeped in politics and is fair game for discussion.
The sad bottom line is, this means some people who don't deserve it will lose their jobs, some people who deserve to lose their shirt will come out of this just fine, and people in Rhode Island who remain employed have just become 1/100,000th part owners of a niche game IP that will ultimately cost each of them more than the price of the game.
The sad bottom line is, this means some people who don't deserve it will lose their jobs, some people who deserve to lose their shirt will come out of this just fine, and people in Rhode Island who remain employed have just become 1/100,000th part owners of a niche game IP that will ultimately cost each of them more than the price of the game.
Hero_of_the_Day
Member
Try and sell it I would assume. Don't know what the fuck else they would with it other than nothing, which would be a bad choice.
Bullshit. He has already defaulted on the first $1.1 million dollar payment. Aside from that, the $75m guarantee the state made to Schilling represents a promise to pay that they could not put elsewhere, as such he has stolen $75m (plus interest) in opportunity costs from the taxpayers.
Jive Turkey
Unconfirmed Member
Probably only one of two things: Let it fade into oblivion or sell it to the highest bidder.
Confidence Man
Member
Saw a piece on this on the nightly news in CT last night. Pretty crazy.
I knew Amalur wouldn't be a hit. Priorities were way off base.
I knew Amalur wouldn't be a hit. Priorities were way off base.
One thing that I think you guys should also realize also is that the talent at 38 is... really high. Some really, really great people work there. I think that once you do see the MMO, you're going to be very impressed.
A default does not mean that he's stolen anything; you're missing the point. The company still has the chance to pay the money. Until the company goes under, the money has not been stolen. They still have the opportunity to repay it. Oy.
It will be liquidated immediately, likely at auction.
This is likely, but is there really any value there? There's only been one game in it released, and it did merely ok. I suppose what I'm more curious about is who would try to buy it and for how much?
Omegasquash
Member
Y'know, I should like Curt because I'm a Sox fan. Amalur though...when it's $20. I really didn't expect that it would do that well considering that it was released around Mass 3.
And taking taxpayer dollars? Ouch.
And taking taxpayer dollars? Ouch.
You are obviously not a lawyer...maybe a 1L at a Fourth Tier law school.
Nope, I work the financing end on deals like this. I'm not saying it can happen, I'm saying it should happen.
Though if there are significant balance sheet intangibles on the pro formas I could see there being lawsuits (praying for a settlement) from the state against various parties for fiduciary negligence/fraud.
SolidSnakex
Member
At this rate I expect to only see it on Unseen64.
Actually I just hate corporate welfare.
Yeah, I know. I vaguely remember you from PoliGaf. I'm just saying, there is a very obvious lack of information. The information we HAVE isn't good, but at the same time we don't know much about how they've been spending their finances, blah blah blah etc. We don't even know the circumstances around the missed payment.
We know that after a closed meeting with the firm and the State, the man who pushed for the deal resigned and the Governor called it "bad money." We can infer that missing the initial payment of $1.1m to the lender most likely to call the loan is not a positive sign. The CEO of said firm taking an unexpected and indefinite leave? Not positive. Schilling not sticking around for the presser after begging for a second round? Not positive. Public sentiment? Not positive.
It doesn't matter how they've spent their finances, because we know how they aren't spending their finances, which is by servicing their debt. It's especially troubling considering the studio has no cash flow injections on the horizon. They have no game to release. Firing people won't generate cash. This is a company that has defaulted on the initial payment and can only survive by additional leverage. In other words, they are very likely f'd.
If they were a month or two out from releasing a game and looking at a revenue injection I'd give them some chance of digging themselves out without additional financing. As it is? I don't see it. Who is going to refinance a company that can't meet their first obligation?
Head of RI Economic Development Corp. resigns amid 38 Studios controversy / Poll
http://news.providencejournal.com/breaking-news/2012/05/providence-ri---89.html
http://news.providencejournal.com/breaking-news/2012/05/providence-ri---89.html
B_Rik_Schitthaus
Banned
They have paid the 1.125 million they owed the state, but didn't make payroll this week.
http://www.wpri.com/dpp/news/politics/local_politics/38-studios-pays-edc-not-employees
http://www.wpri.com/dpp/news/politics/local_politics/38-studios-pays-edc-not-employees
Fine Ham Abounds
Member
Something about bodily fluids in footwear
FieryBalrog
Member
The company couldn't even make their first payment? Where has all the money gone?
They haven't given out any media of even a pre-Alpha, no screenshots or videos or anything. This is crazy. If I didn't know better I would suspect it was outright fraud, but there is no reason Curt would fuck over his whole life like that given his immense personal wealth.
They haven't given out any media of even a pre-Alpha, no screenshots or videos or anything. This is crazy. If I didn't know better I would suspect it was outright fraud, but there is no reason Curt would fuck over his whole life like that given his immense personal wealth.
Fine Ham Abounds
Member
I'd love to be a fly on the wall at the studio this week.
It may be that in that meeting it was made clear that they would need to pay that 1.25 million before the state would be willing to assist the company.
Hopefully this will help lead to a bridge loan of some sort, but given that we have no sign that Copernicus is going to launch any time soon, and also the likelihood that it will be greeted with a deathly silence when it does, if I worked at 38 I'd have my resume polished up and be out looking for job interviews right about now.
Hopefully this will help lead to a bridge loan of some sort, but given that we have no sign that Copernicus is going to launch any time soon, and also the likelihood that it will be greeted with a deathly silence when it does, if I worked at 38 I'd have my resume polished up and be out looking for job interviews right about now.
thats horrible
Uh, wow damn. This is snowballing hard.
I just feel sorry for the employees at this point. 38 Studios is obviously a sinking ship. So they met the obligation of the first payment, but can't pay their employees, huh? The state would be nuts to give them any extra funds. As it is like asking for a bigger shovel so they can dig a deeper hole at this point. What a mess. "Bad money" indeed.
Banana Kid
Member
I don't know if he's got quite enough millions to pay 400 employees himself.
- Status