Governor’s loose lips sunk ship, claims Schilling

38 Studios founder Curt Schilling claims comments made by Rhode Island Governor Lincoln Chafee caused a $35 million dollar publishing deal for a sequel to Kingdoms of Amalur to go belly-up.

The studio laid off its entire workforce last week after a missed payment on a state guaranteed $75 million loan exposed massive fincancial troubles in the all-star studio.

When the news broke in Rhode Island, the Governors office scrambled, forming emergency meetings with the studio, which agreed on the condition the meetings were held behind closed doors.

But members of the economic development corporation and the Governor’s office continued to leak details, and the former Red Sox pitcher says these comments undermined his studio’s chances of securing financial backing.

In an interview with the Providence Journal, Schilling said that within 72 hours of the Governor sayin that he would try to keep 38 Studios "solvent", the publishing deal, and the last chance the studio would have for outside funding, fell through.

38 Studios was unable to convince the state to proceed with tax relief Schilling claims had been promised, and to which the studio was legally entitled.

In addition, he says RI officials backed out of a deal which would allow the studio to defer a late payment $1.125 million in order to meet payroll on May 15.

Schilling also claims to have $50 million dollars of his own personal fortune invested in the studio.

Chafee points to pre-existing concerns about the health of the company, and says he was unconvinced that 38 Studios would ever become profitable, calling Kingdoms of Amalur a failure which would have needed to sell three million copies to break even.

The game has reportedly sold over 1.2 million copies

Chafee denies his comments caused the studio material harm, and that the state reneged on promised tax relief.