One-time baseball great Curt Schilling loaned his fledgling video game company several million dollars and then paid himself back using funds from a multi-million dollar loan provided by the state of Rhode Island.
Schilling, a former Red Sox pitcher, agreed to move his video game company, 38 Studios, to Rhode Island and hire 450 locals in return for a $75 million loan from Rhode Island, Deadspin reports.
Now the company, which failed to employ the promised number of Rhode Islanders, is facing major development hurdles and debt.
Last year Schilling told Reuters that he had invested "$30 million to $35 million" in 38 Studios. A disclosure filing obtained by WPRI shows that Schilling advanced the company $4 million of his own money, and has already been paid back—with funds from the Rhode Island loan.
The sports blog also noted that Rhode Island might have to foot the bill for Schilling’s company if it fails:
“The worst case scenario? 38 Studios goes under, and is unable to repay the loan. If that happens, taxpayers are on the hook for $112.6 million after interest is factored in. Maybe Curt Schilling was right all along: big government and the stimulus plan just don't work.”