Curt Schilling: 38 Studios Cost Entire Baseball Fortune
Curt Schilling, the former Red Sox star, told Boston’s WEEI radio show on Friday that 38 Studios LLC, his Rhode Island video game company, went bankrupt because it wasn’t able to raise more money from outside investors. He also admitted to losing $50 million in the venture.
Boston.com reports that Curt Schilling, who appeared on the Dennis & Callahan sports radio show on WEEI, stated:
“One of the going concerns from Day One – and it was always something that we were cognizant of – is we needed to raise capital. We tried for a long time to do that and it didn’t come to fruition.”
According to ABC News, the former MLB star explained the loss to his finances by saying:
“I’m tapped out. The money that I had earned and saved in baseball was all gone. … I put everything in my name in this company. I believed in it. … But I’m not asking for sympathy. That was my choice.”
Friday’s interview is the first that Schilling has done since 38 Studios filed for Chapter 7 bankruptcy on Jun 7th, just days after the company was forced to lay off all its workers (about 400 people) in late May. Boston.com reports that in the bankruptcy filing, the company reported that it owes money to more than 1,000 people and companies, and that it owes over $150 million, mostly to the Rhode Island Economic Development Corp., and that 38 Studios had less than $22 million in assets.
Curt Shilling states of the company’s workers that:
“The employees got blindsided. They have every right to be upset. I always told everybody if something were going to happen, you‘re going to have a month or two of lead time, and I bombed on that one in epic fashion.”