Jun 22, 2012|
Segment #1 - Former Red Sox pitcher Curt Schilling came on D and C to publicly address his failed video game venture and respond to fans and critics alike. Schilling addressed who he thinks is to blame, how everything went down from his point of view, to seperate fact from fiction and whether or not he is a hypocrite who has gone against his conservative views.
Transcript - will not be 100% accurate
Our 2000. Callahan. If you've been paying even a little bit of attention to anything. You're aware of the 38 studios played in Rhode Island and -- holdings company. Curt Schilling joins us in the studio morning -- morning I would ask how you're doing by the got a pretty good idea about that and settle start this. When you embarked on this adventure when you embarked on this business idea I suppose. If you read a business plan you sit there and think what's the best it can happen and what is the worst that can happen. Did you consider what the worst could possibly be and did this scenario ever enter your mind free launch. Well you always think about -- plan to consider things. You know this was always a potential but it never in my wildest dreams ever expect they'd be either here or close to here. Com up until about two months ago. And then you know all happened so fast and and it's just been. Spend kind of a surreal. In sixty days every five days. A -- -- who will what does it been like for you and your family and your employees watching this thing play out so publicly. A mom like a bad movie a look at -- Merrill all of it Jerry -- It -- do. The employees got points that there was no. One of the many many mistakes that thing here that was later that I made that we made it. That's leadership team as -- -- this is camera. And and all -- we never. You know the they found out. Because governor if he made a comment on Monday night's. About 7 o'clock. Am public comment which. Neither side ever publicly on anything. And it was based around keeping the company used the word salt and that were. Reflect it was an enormous. Problem for us the employees had no idea it was day. And -- -- And manages it just went down. Up personally this went haywire for you up politically it went haywire and certainly first and and foremost from a business standpoint it went haywire let's start with federal review what happened business wise that have this thing circling the drain and expect what we we. If you looked at the original documentaries. On offering one of the one of the going concerns from day one always something cognizant. Are needed we needed to raise capital of finals with a final -- between. Or -- money hand in hand on my investment in launch of the medium well. And you know we tried for for a long time -- didn't come for Russian. And it's you know the challenges and I I I can understand people. Questioning the validity of of the common good but it does the scenario as it pertains in the final probably 45 months dramatic. For February. Incredibly well received outperform these lifetime sales expectations in its first ninety days. So the contacts in the velocity of the discussions that we were having changed dramatically and we -- -- Time Warner. We felt like we were comfortable with the thought that. Sometime between may and April in the debate we would either get three term sheet form more than one term sheet or find one not one more investors in the conversations were around. At the same time. The studio -- Baltimore had the literally we were we were waiting. Literally Tuesday morning meeting finals enough for -- 35 the 32. Game reckoning that's the game. For the first. And the next morning. Late the next day after after the public commentary. The discussion and it completely went from. Kind of what was just -- Kind of a cursory meetings to give the final retarded and are down over due diligence. We were talking in detail about terms completion. The congress and -- and I knew then we. Put you know the challenge. In in in -- Again the employees. Got points they didn't deserve it was not how we ever did business that we lead the -- it was that was the company -- hand. That was about -- and we were never concerned. Analysts are concerned we were never worried about actually getting money to make the payroll it was weird just assuming that. There was some man Texans and people were. Getting involved in in negotiating for things. Him going to discuss tax credits. Just for that reason and then it became a potential donor. Money in and I are fond of the company. For. And it just kind of spiral out. You you busted now and you broke arm arm tapped out. If that helps you didn't walk away with now. When anything now nine put everything in line. I need it and I believe in it but I believe and what we'd built means item. Never took apparently from the company -- -- opinions aren't appropriate for anything. In tandem but it but it was it was it was different it was it would will be built was so incredibly different from company perspective we -- -- Was it was a made me it was it was Adam I think it was a dream place to work. And you know past employees and whether it's true or not but did everything we did was built around. Taking care of it it it was a lot of lessons learned. In my career we we we spent. Five and a half years building a place that there wasn't a place to work it was it was a place through -- belong it was a very different place and we have invested are all of the time and money in the making. And -- -- -- much of your money did you lose. In his I I put in just north of fifty million dollars I think when all -- -- Stole. So trying to figure out exactly what the bill and got none of that fifty back no no -- right it was all well and then. -- I I don't. It's it I don't I don't wanna -- obviously it's been a challenging couple months in hand that Matt's in this but I don't I'm not. Asking for sympathy card I -- that was my choice -- chose to do this -- wanted to build this wanted to. To create the jobs and create something that had a very long standing world changing fat man and I've thought we knew we were close. We're close to getting it -- the Pope or did you. Follow your heart too much and not your hand amenity you can and you made the comparison your -- you could be passionate about baseball you can be emotional. You too emotional above this company. And not. And and and maybe -- for an example. Talk about how much your employees made and in on the -- the studio was when these things that maybe went overboard on don't know. Jerry that that did the thing was we we did in if you look at what we've we feel we didn't help people we didn't we didn't buy employees it was -- we paid them a very competitive salary in the industry and they're. They deservedly make a lot of money I think our average selling -- it was 6000 dollars a year seems a lot and that's -- that's a lot of monies are kids that are unbelievably. Talented and can work literally anywhere they want and we worried your revenues are and so. To get them to come to work with us and for us they had either they'd be paid more a lot more than they are currently being paid. Or -- believed in what we were building and we weren't gonna overpaid them and we didn't so so you know we put together an incredible place to work -- -- we are we have an incredible health benefits plan for for employees and we went overboard suits that state and not overboard but we did everything we could do to make sure that they understood that they would never worked for someone cared more about them than we need that wasn't a mistake to to pay them what you -- them to invest relocation at and I must become more -- that was the only way we could get did build a team that we built. Lowest seed to do the things and listen there's. We actually made mistakes but it -- everything ever done in my life -- from our and that I mean that was why I didn't I was able to do what I was doing over that was why it was the pitcher work because. I feel like in my heart mistreated in some things that I might not about the way. Don approach using my head. But. You know to to counterbalance that I surround myself with with incredibly intelligent people com in and software. And and and allow you know because this was you know it was a place where where I work in and I always. At the opposite every day for five -- almost six years but. But I have leaders in and allowed them legion and and do what it is they were supposed to do so what went wrong. We didn't raise capital we did not raise private equity deprived -- but the end of the day when you look at all the things that we did. You know I'd I'd I'd put all the money I seven put in my -- IE I guarantee that things are guaranteed for long perspective and I never took a penny out and we spent the money exactly how -- we defined it in all the documentation with the state. And the one thing that we always listed as a going concern we clinics. And we could not raise private capital and I'm for a for a litany of different reasons I'm sure if you ask anybody the local do you wanna wanna more reasons but. That the hard part and probably the the most painful part was we had we -- for the first time viva fewer samples and and it it it just didn't work. Governor Chafee is comment about solvency did not immediately flip the landscape. Oh yeah did it changed drastically change and and a 38 million dollars you're gonna get the next day went away his deal all the yeah all the conversations we had stopped at -- so my question to you is did he do that intentionally was it a slip of the tongue was there. Was there malice aforethought here why did you -- basket -- -- -- IE RE. Listen. If you look at the last sixty days -- accurate comment that that's the Euro aid. And and and the the other challenges that when you when I say the state over Ireland I'm talking about her few specific people -- -- -- taxpayers. I think that was one colossal mistake that we made from the outset was not engaging the province. And bringing. Literally having is we need to have open house bringing them in to let them see what it is that we do. And we were we were we were incredibly silent. Two point work cause problems. You know we have our grand opening at a store in mass. For the launch of our game unbeknownst to anybody that wasn't our call that was this GameStop was -- the storm were -- and open where the opening. And that was their decision on where we would do we want its opener in Providence locally because that's where we belong. We do we we made mistakes like that we just didn't we we we didn't engage the local community and to get them. To see what it is we were doing this week we have 300 people stereo were out in the business community every -- at once we made an impact on the local. In the technology industry -- dramatic impact from the day we moved do you think governor JP was disappointed when 38 studios -- now not at all. No I I think on. They do have an agenda in an excuse. And and 400 people out of work. Well yeah I mean they were right I think a majority if not all most of them. Again we have an amazing amazing team and epic came in. At the wealth power and picked up aren't are almost aren't our Baltimore studio as a team. And the most though a lot of that the employees in the and the -- we have found work elsewhere that's. And that's been the hardest thing is I've I've been in touch with hundreds of them on them on almost a daily basis and. You don't see too many disgruntled employees well I've seen they have every quarter -- trolling on. Twitter saying call me -- -- reporter do this call me if Europe yeah -- laid off. Fired thirtieth -- -- -- tell me your story and tablet form you don't see too many employees and -- screwed it. Dated date now got a blossomed -- they have every right to be upset I mean I always polled everybody if it's something we're gonna happen you're gonna have a month or two. The lead time and and an -- I'd I'd I'd. Bomb on the -- and an epic -- and again. You know that it is there's so many. Real life stories -- you know people talk about a lot of the incidents that came out in this. -- -- we'd that we fired everybody by email. Which we ended up terminating people buying open. The reason was that at that point they had received a paycheck almost three weeks and people were were out of money. And sold their people -- drove an hour apple -- work and and they couldn't get to work on it if we were gonna be able to save them and ends and you know that we left them without health care which we didn't we we were working diligently at the end to make sure that when. We did it right to make sure their governor their health care extended past. When it was in end in a week. We have pushed tables like it and if he talked on Dorsey talked to -- people -- you always want to be -- up bills that. You get to -- read -- push things pushed tables among you put you know he put your credit karma does not. We pushed tables at a point where it was it was it was potentially damaging situation and and that's why again. If we had thought for a second we weren't gonna get extra money we we we there have been different there was never consideration. I want to get I want to -- ninety -- -- -- I wanna ask about the tax considerations the loan guarantees the move for Maynard to Rhode Island also burn rates as well it's gonna open the phone lines like you talked to -- 6177790850. Toll free number 8885250850. Curt Schilling with you next.
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