The last we heard from Schilling and his former 38 Studios, the infamous bloody sock from the 2004 American League Championship Series was up for auction because Schilling had listed the item as collateral on loans he had taken out to support his business. However, it’s now the loans, themselves, that are being scrutinized.
According to information obtained by The Associated Press, Schilling and 38 Studios may have known they would not be able to repay a $75 million loan from the state of Rhode Island. However, they took the money anyway, according to court documents.
Schilling and 38 Studios were already being sued by Rhode Island’s economic development agency, which was alleging a number of crimes surrounding the loan. Last week, though, additional documents were filed indicating that the body that approved the loan for the state was not apprised that, even with the loan, the company would not have enough funds to complete the video game it was working on.
Instead, the new documents allege that Schilling and 38 Studios misled the state into accepting the deal.