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10. Re: etc. Jul 27, 2012, 14:52 m0deth
 
Cutter wrote on Jul 26, 2012, 12:13:
“I never had that confidence and I was always reluctant to get in any deeper.”

Chafee’s comments are made easier to swallow by a report from earlier in the week in which Schilling admitted Copernicus wasn’t up to scratch. In the same interview, Schilling admitted to bit spending; a Harvard Business School report estimated the company spent well beyond its start-up means; $705,000 on “travel and entertainment” for two years, for example.

“38 Studios was hemorrhaging cash – our cash,” former Rhode Island Economic Development Corporation boss Saul Kaplan said.

“The thing that is most amazing to me is their burn rate was about $5 million a month all through 2011, heading into 2012, and it didn’t slow down even when they knew they were running out of cash.”

No wonder they're being investigated. Sounds like the mucky mucks at 38 rather enjoyed living like rockstars whilst the rank and file couldn't even get their basic costs covered. Disgusting.

It's worse in some cases for some of those people that worked there. My sister in law told me that not long ago, she felt bad and ended up buying groceries for one of those families(this was before it all hit the fan)after walking my niece over there to play with their daughter. I guess they lived a block or so down the road.

The employee of 38 had not been paid his salary in two months, and their family of five had moved from out of state, no family here, no support, and no pay. Now they are totally screwed.
 
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9. Re: etc. Jul 26, 2012, 21:50 Prez
 
Founder Curt Schilling footed all bills, since the company wasn’t bringing in any revenue, before being subsidised by a $75 million loan from the state of Rhode Island.

Say what you want about Schilling's business decisions (which obviously were pretty crappy), at least the dude put his money where his mouth was. What I have a problem with is taking tax money on and spending it recklessly too. What he did with his money is his business; wasting taxpayer money is another story altogether.
 
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“The greatness of a nation and its moral progress can be judged by the way its animals are treated.”
- Mahatma Gandhi
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8. Re: etc. Jul 26, 2012, 15:27 Creston
 
Verno wrote on Jul 26, 2012, 12:47:
Boston Magazine did a fairly balanced story about the whole thing and the TL;DR is that despite people believing otherwise, Curt really did blow it. Sure other people were involved but the blame pushing onto the governor was really unfair, the company was mismanaged from day one.

It's a really interesting read and it's amazing how many parallels there are to Ion Storm and the John Romero debacle in there.

Thanks for the link, that was a very interesting article. I'm not really sure how Curt's going to escape jail time out of this. He deliberately lied to his employees, he deliberately lied to investors (Copernicus was nowhere near ready to be shipped in a year), he continuously tried to scam RI out of more money (getting tax credits that you then sell to a broker for cash? How more fucking desperate can you get?)

I realize full well CEOs pull off this kinda shit all the time, but I think they're going to Martha Stewart him and make another example out of a celebrity.

But I read that article just shaking my head over and over. Curt didn't just need "Business 101" and "How to sit in an office 101" and "Why Nepotism is never a good idea 101" classes, he needed some fucking Common Sense 101 classes too.

I feel bad for the poor employees whose lives got ruined. For Curt? I don't feel an ounce of pity for him. "50 million of his own money was gone and his kids had to see him cry!" Yeah yeah, boo hoo, cry me a fucking river, Shonda Schilling.

Creston
 
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7. Re: etc. Jul 26, 2012, 14:34 Verno
 
xXBatmanXx wrote on Jul 26, 2012, 14:05:
705,000 on “travel and entertainment” for two years, for example.

WTF!!?

Haha oh it gets worse man. They were doing dumb shit like buying every meal for employees, giving every person in the company laptops as a gift and much more. He hired family members and friends into important positions in the company. Curt kept meddling in the day to day operations and fired the CEO who was kept being a party pooper. He refused to give up any equity in investment negotiations despite them running out of time and having an insane cash burn rate of over $5mil per month. He just royally screwed them.

This comment was edited on Jul 26, 2012, 14:47.
 
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Playing: Dragon Age Inquisition, Far Cry 4, This War of Mine
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6. Re: etc. Jul 26, 2012, 14:05 xXBatmanXx
 
705,000 on “travel and entertainment” for two years, for example.

WTF!!?
 
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Buy from GreenManGaming? Use this, we both get $2.00 - http://www.greenmangaming.com/?gmgr=purutuwi
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5. Re: etc. Jul 26, 2012, 13:23 Veterator
 
I guess sports sayings and what not don't make for good business practices. Leaving it all on the field, giving it your all......

 
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4. Re: etc. Jul 26, 2012, 13:19 Jim
 
That is one of the most poorly written articles I've seen in quite a while. Spelling and grammatical errors galore, and WPRI (not WRPI) is a television station, not a publication.

Here's the source article.
 
Jim
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3. Re: etc. Jul 26, 2012, 12:51 Beamer
 
No surprise Curt didn't know how to run a business.  
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2. Re: etc. Jul 26, 2012, 12:47 Verno
 
Boston Magazine did a fairly balanced story about the whole thing and the TL;DR is that despite people believing otherwise, Curt really did blow it. Sure other people were involved but the blame pushing onto the governor was really unfair, the company was mismanaged from day one.

It's a really interesting read and it's amazing how many parallels there are to Ion Storm and the John Romero debacle in there.
 
Avatar 51617
 
Playing: Dragon Age Inquisition, Far Cry 4, This War of Mine
Watching: The Fall, The Walking Dead, Leon
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1. Re: etc. Jul 26, 2012, 12:13 Cutter
 
“I never had that confidence and I was always reluctant to get in any deeper.”

Chafee’s comments are made easier to swallow by a report from earlier in the week in which Schilling admitted Copernicus wasn’t up to scratch. In the same interview, Schilling admitted to bit spending; a Harvard Business School report estimated the company spent well beyond its start-up means; $705,000 on “travel and entertainment” for two years, for example.

“38 Studios was hemorrhaging cash – our cash,” former Rhode Island Economic Development Corporation boss Saul Kaplan said.

“The thing that is most amazing to me is their burn rate was about $5 million a month all through 2011, heading into 2012, and it didn’t slow down even when they knew they were running out of cash.”

No wonder they're being investigated. Sounds like the mucky mucks at 38 rather enjoyed living like rockstars whilst the rank and file couldn't even get their basic costs covered. Disgusting.
 
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"Bye weeks? Bronko Nagurski didn't get no bye weeks, and now he's dead… Well, maybe they're a good thing." - Moe
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