RI Treasurer Continues to Question Schilling Deal

August 11, 2010 -

Rhode Island Treasurer Frank Caprio is still attempting to poke holes in a $75 million guaranteed loan that helped lure Curt Schilling’s 38 Studios to the Ocean State from Massachusetts.

Speaking to Providence’s NBC 10 I-Team, Caprio, who is also a Democratic candidate for Governor, said that investors might be hesitant about buying into the $75 million "moral obligation" bonds because the nature of their structure makes them high risk and "there's nothing legally that would make Rhode Island pay off the investors."

Caprio continued:

The way this is structured now is structured in a similar way. There are minimal payments for the first 10 years, and then there's a balloon payment for about $45 million of the loan. And that's the major issue for the bond market. The bond market is saying, what faith would an investor have that 10 years from now some future legislature will appropriate a lump sum of $45 million for a failed deal?

While a spokesperson for the Rhode Island Economic Development Corporation, the organization behind the financing, stated that the group is “confident” it can make the investments attractive to the bond market, Caprio stated that the deal with Schilling is far from finalized, using baseball terms to state that it’s merely the first inning of a nine-inning game.


Comments

Re: RI Treasurer Continues to Question Schilling Deal

Caprio, all bonds are structured that way.  A bond is a security that is purchased at some nominal price, pays interests accross its lifespan, and then repays a lump sum on the maturity date.  Minimal payments for 10 years followed by a ballon payment on the maturity date is the definition of a bond.  The bond market is, naturally, used to this because that's how bonds work.  How is it possible a state treasurer could say something so stupid?

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Matthew Wilsonhttp://arstechnica.com/tech-policy/2015/07/chicago-netflix-customers-your-bill-is-about-to-up-9-percent/ Chicago wants to become the new Detroit so be it.07/01/2015 - 4:58pm
InfophileAnd also, she said "anyone," but she also said "probably." This means there's a subset for whom the "you shouldn't write it" doesn't apply.07/01/2015 - 4:47pm
InfophileGoing back a bit: "As I believe there is no justification, there is no reason for me to continue reading." - One reason to read might be to find out if you're wrong about there being no justification for it.07/01/2015 - 4:45pm
Andrew EisenRead it here: http://www.zenofdesign.com/getting-diversity-to-speak/07/01/2015 - 4:42pm
Andrew EisenFormer Bioware dev, Damion Schubert, offers an interesting thought on diversity in the industry. Not only is it important to have, it's important to make sure they feel comfortable offering their perspective.07/01/2015 - 4:40pm
Andrew EisenHeh, I did consider it!07/01/2015 - 4:37pm
Craig R.Aww, video gamer players wasn't an option for the poll?07/01/2015 - 4:33pm
KaylaKazeI think the problem here is certain people don't know what "shouldn't" means, even after it's been explained to them half a dozen times.07/01/2015 - 4:19pm
Andrew EisenWhat if creators heard our feedback, agreed with it and then... oh god... made a better show? The HORROR!!!07/01/2015 - 4:13pm
Andrew EisenI mean, next thing you know they'll make a YouTube video. A YOUTUBE VIDEO!!!07/01/2015 - 4:07pm
Andrew EisenHow DARE anyone write an opinion suggesting that people who suck at something might consider a better way to accomplish the same thing or improve so they suck less. The NERVE!07/01/2015 - 4:06pm
Goth_SkunkYes, but we complain about it amongst ourselves, we shake our heads, we sigh, shrug our shoulders and say 'oh well, what can you do?' We don't write articles for Wired and say 'Anyone can write about X, but should they? Probably not.'07/01/2015 - 3:57pm
Andrew EisenMy favorite is: "Zoom and enhance!"07/01/2015 - 3:55pm
E. Zachary KnightGoth, you must not hang out with many technology experts. We complain about bad portrayals of tech all the time.07/01/2015 - 3:52pm
Andrew EisenPeople should be free to write about anything their little hearts desire. Even if they suck at it. Maybe not the most advisable thing to do, depending on their personal goals. But that's why you listen and learn and improve! Or try to, anyway.07/01/2015 - 3:50pm
Andrew EisenAnd you're straying from the path a bit but the sentiment in and of itself I agree with.07/01/2015 - 3:47pm
Goth_SkunkBut, as in the example I provided with call tracing and cell phone triangulation, the audience lets it slide, even the subject matter experts.07/01/2015 - 3:47pm
Andrew EisenGreat! Maybe you'd change your mind if you read her reasons for suggesting such a thing, maybe not. But at least now you're opining what she actually said!07/01/2015 - 3:46pm
Goth_SkunkFor the sake of entertainment, people write about things they shouldn't write about all the time. If they stopped, most things fiction would cease to exist.07/01/2015 - 3:46pm
Goth_SkunkAnd I think that's a despicable thing to suggest, worse than someone who sucks at writing a rape scene doing so. By all means, if the rape scene was poorly written, criticize it after the fact.07/01/2015 - 3:45pm
 

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