Schilling Blames Rhode Island, Chafee For Video Game Company's Troubles
PROVIDENCE, R.I. (CBS/AP) - Former Red Sox pitcher Curt Schilling blames broken promises by Rhode Island and Gov. Lincoln Chafee for the financial trouble his video game company is in.
In an interview with the Providence Journal, Schilling said the state pulled back on a deal to approve film tax credits for his company, 38 Studios. He said the state also refused to allow 38 Studios to defer a $1.12 million loan payment that was due May 1, causing the company to miss payroll on May 15.
Schilling described Gov. Chafee's comments about his company's financial health two weeks ago as "devastating."
He added that days after the comments, a video-game publisher pulled out of a $35 million deal to finance a sequel to his first video game, Kingdoms of Amalur: Reckoning.
Gov. Chafee said Tuesday his comments about the financial health of 38 Studios didn't hurt the firm and disputes that the state reneged on a deal for tax credits.
Schilling moved 38 Studios from Massachusetts to Rhode Island two years ago after he was given a $75 million loan guarantee.
If the company fails, taxpayers in the Ocean State will be responsible to repay more than $100 million. Schilling said he stands to lose more than $50 million of his personal fortune.
Last week, 38 Studios was forced to lay off all of their nearly 400 employees.
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