Primack: Lessons to learn from 38 Studios

THERE ARE four important lessons to learn from Rhode Island’s 38 Studios disaster, according to Fortune Magazine Senior Editor Dan Primack.
Posted 6/15/12

NEW YORK – There are four important lessons to learn from Rhode Island’s 38 Studios disaster, according to Fortune Magazine Senior Editor Dan Primack.

In order to prevent the next 38 Studios, Primack says politicians need to stop playing at being venture capitalists.

“Most professional venture capitalists lose money, so why would amateurs in political office do any better?” asked Primack in his article “4 lessons from Curt Schilling’s 38 Studios fiasco.”

If politicians insist on pretending to be venture capitalists, then they should share in the risk, said Primack, adding that “the most egregious part” of Rhode Island’s $75 million loan guarantee to 38 Studios was that it required no validation from outside investors.

In addition, “dogma mixed with dollars can be toxic,” said Primack, pointing toward Schilling’s outspoken conservative values.

Although the former Red Sox pitcher famously endorsed limited governmental power, he “begged” for film tax credits or a payment deferral when his company was unable to pay the interest on its loan.

“Not only was Schilling betraying his own public values, but he was also putting his company in a vulnerable position,” said Primack.

Primack’s final piece of advice was that it is difficult and rare for someone at the top of one field to reach the top of another, unrelated field.

“Schilling did try to hire experienced gaming execs to help fill in the blanks, but ultimately he was an ex-ballplayer in charge of a digital content corporation.”

PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot early!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News