Now that 38 Studios, the video-game production company founded by Curt Schilling, has collapsed, the most unexpected development is how often callers on sports radio want to talk about the industry. There's discussion about whether Schilling should've been able to attract more venture capital firms, the cycle of creating new games, the growth potential for multiplayer fantasy games, and of course, how much blame Rhode Island's state government deserves for its $75 million loan to the company, which has apparently turned into a $112 million bill on the state budget. (How $75 million became $112 million within about two years confuses me, even when the loan's interest is added. This sounds usurious.) Listening to Joe-in-the-car's dissection of raising venture capital makes me miss the hourlong discussion earlier in the week about whether Adrian Gonzalez, Kevin Youklis or Will Middlebrooks should move to the outfield to make room in the lineup for Youklis' return from injury.
Not surprisingly, I don't object to the concept that Rhode Island chooses to provide loans (or loan guarantees) to different kinds of businesses, fledgling or mature, entertainment or manufacturing. In economic development, the state can interject itself into the market to steer certain policy, backstop companies that could have trouble getting off the ground, or supporting companies that employ people in a certain of line of work. This is reasonable. 38 Studios was a more questionable decision, considering it was founded by Schilling, who while a great baseball pitcher was a very inexperienced video game businessman indulging a personal passion. The $75 million also apparently consumed the Rhode Island economic development department's entire budget for such matters, which isn't a prudent decision. The governor at the time, Donald Carcieri, was probably distracted by Schilling's fame, particularly in New England, and the headlines his company's move from Massachusetts would bring.
The richest part of this mess is that Schilling is an ardent conservative, of the same feather as those who say the country's spending is out of control, the national debt is our gravest problem, and President Obama is trashing the country. Not only has Schilling, a notorious loudmouth, been silent through this affair, he also apparently believes government money should only be spent and the free market should only be corrupted when he's the beneficiary. His predicament would certainly be this month's most prominent example of "you can't have it both ways" if it weren't for Joe Ricketts. He's the billionaire founder of TD Ameritrade who's contemplating multiple ways of smearing Obama via a super PAC during the presidential campaign because Ricketts abhors Obama's fiscal policies. At the same time, his family, which owns the Chicago Cubs, is asking the City of Chicago to subsidize its $300 million renovation of Wrigley Field. Not surprisingly, Mayor Rahm Emanuel isn't amused. Sometimes it's too hard to make up this sort of stuff.
Not surprisingly, I don't object to the concept that Rhode Island chooses to provide loans (or loan guarantees) to different kinds of businesses, fledgling or mature, entertainment or manufacturing. In economic development, the state can interject itself into the market to steer certain policy, backstop companies that could have trouble getting off the ground, or supporting companies that employ people in a certain of line of work. This is reasonable. 38 Studios was a more questionable decision, considering it was founded by Schilling, who while a great baseball pitcher was a very inexperienced video game businessman indulging a personal passion. The $75 million also apparently consumed the Rhode Island economic development department's entire budget for such matters, which isn't a prudent decision. The governor at the time, Donald Carcieri, was probably distracted by Schilling's fame, particularly in New England, and the headlines his company's move from Massachusetts would bring.
The richest part of this mess is that Schilling is an ardent conservative, of the same feather as those who say the country's spending is out of control, the national debt is our gravest problem, and President Obama is trashing the country. Not only has Schilling, a notorious loudmouth, been silent through this affair, he also apparently believes government money should only be spent and the free market should only be corrupted when he's the beneficiary. His predicament would certainly be this month's most prominent example of "you can't have it both ways" if it weren't for Joe Ricketts. He's the billionaire founder of TD Ameritrade who's contemplating multiple ways of smearing Obama via a super PAC during the presidential campaign because Ricketts abhors Obama's fiscal policies. At the same time, his family, which owns the Chicago Cubs, is asking the City of Chicago to subsidize its $300 million renovation of Wrigley Field. Not surprisingly, Mayor Rahm Emanuel isn't amused. Sometimes it's too hard to make up this sort of stuff.
No comments:
Post a Comment