Rhode Island Loan Schedule For Schilling's 38 Studios Detailed

Curt Schilling's 38 Studios can receive a large portion of $75 million in controversial loan guarantees from the state of Rhode Island even if it doesn't fulfill its full promise to bring 450 full-time employees to the state. A report from Providence's WPRI shows that the former pitcher's company will receive $64 million in loans if it attracts just 250 full-time jobs to the state by the end of 2011. While 38 Studios would be liable for penalties if it failed to meet job creation milestones before and after that point, the penalty of $7,500 per job missed would amount to only a small percentage of the total loan amount. Melissa Chambers, a spokesperson for the Rhode Island Economic Development Corporation, told WPRI that this technicality is immaterial, since the company's business plan calls for 450 employees to support the company's Project Copernicus MMO. Still, the company is due to receive $43.8 million in loans before that game is even gets a signed distribution agreement on November 30th, 2011, ahead of a September 2012 release. If the game is delayed, as many MMO projects are, EDC lawyer Robert Stolzman told WPRI the state will sit down with the company and figure out a way to protect the taxpayers' investment and get the project moving again. The loan guarantee also requires 38 Studios to announce a date for its move to Rhode Island by Nov. 30 of this year, and to start the relocation with at least 80 employees by Feb. 28 of 2011. The company must have 125 full-time workers in Rhode Island by August 31st, 2011, 300 workers by October 1st of 2012 and 450 workers by October 1st of 2013 to avoid penalties. There are currently 175 full-time employees working for 38 Studios, including 81 that work in the Timonium, Md. headquarters of Big Huge Games, which the company acquired last May. Many of those employees may stay in Maryland even after 38 Studios completes its Rhode Island move, according to EDC officials. The company has until November of 2020 to pay back the loan before forfeiting a final $7 million in payouts.