Schilling's video-game company goes bankrupt

Schilling's video-game company goes bankrupt

Schilling's video-game company goes bankrupt
Former World Series co-Most Valuable Player Award winner Curt Schilling said Friday that the Rhode Island video-game company in which he invested more than $50 million went bankrupt two weeks ago.

Schilling, who racked up 216 wins in his 20-year Major League career, told a radio program on WEEI in Boston that his 38 Studios couldn't raise money from outside investors.

"We tried for a long time to do that and it didn't come to fruition," Schilling said in an interview on the Dennis & Callahan show.

The company filed for Chapter 7 bankruptcy on June 7, weeks after it laid off all of its employees, who were owed millions of dollars in back wages and whom Schilling said had no warning about the company's financial nightmare. The company reported that it owed more than $150 million and had less than $22 million in assets.

"I put everything in my name in this company," said Schilling, who founded the company six years ago. "I believed in it. I believed in what we build. I never took a penny in salary. I never took a penny for anything."

Schilling said an investor promised to bail out 38 Studios with $15-20 million, but the state of Rhode Island refused to grant the company $6 million in tax credits and to renegotiate a loan guarantee so the investor would be repaid first.

Citizens Bank sued Schilling for $2.4 million in loans to 38 Studios that it claims the former pitcher personally guaranteed. Schilling, who earned more than $114 million in his career, according to baseballreference.com, reportedly told his family last month that the money he had saved up from his baseball days was "probably all gone."

A three-time World Series champion and six-time All-Star, Schilling pitched for five teams in his career. He topped 20 wins three times in a four-year span from 2001-04 and tallied 3,116 career strikeouts.

Zack Meisel is a reporter for MLB.com. Follow him on Twitter @zackmeisel. This story was not subject to the approval of Major League Baseball or its clubs.