Curt Schilling recently announced that he is moving his Massachusetts-based video game company, 38 Studios, to Rhode Island.

Rhode Island has agreed to provide 38 Studios with a $75 million guaranteed loan. 38 Studios claims they will bring 450 jobs to the state of Rhode Island by the end of 2012 and if not they will pay a penalty.

Now, Curt Schilling has never been one to (pardon the pun) put a sock in it. He has been very outspoken against tax increases and government spending, yet he seems to have no problem taking $75 million in taxpayer’s money. It appears that Schilling went to both Massachusetts and Rhode Island to try to secure government funding for his company but Massachusetts made a very wise decision in not getting into a bidding war over 38 Studios. There is huge risk involved with this guaranteed loan because the company has not released a video game and has no plans to do so until fall, 2011 and Schilling’s track record is one of baseball accomplishments not successful business ventures.

An investment from Rhode Island’s Economic Development Corporation into a company that promises to bring 450 direct jobs to the state seems like a good idea, but what happens if they fail? The state will be left with the debt. Rhode Island is already facing a double digit unemployment rate and it makes you wonder if this $75 million would have been put to better use by investing in the state’s current companies.

What do you think?

Share on Facebook

Share/Save