BCU accreditation “very much in doubt”, athletic programs potential target for cuts

[superman7515]

https://www.news-journalonline.com/news/20200203/b-cu-president-brent-chrite-accreditation-lsquovery-much-in-doubtrsquo


DAYTONA BEACH — In a letter to alumni last week, Bethune-Cookman University (https://www.cookman.edu/about_BCU/index.html) President Brent Chrite (https://www.news-journalonline.com/news/20190423/b-cu-taps-university-of-denvers-brent-chrite-as-7th-president) put in stark terms the existential threat looming over the school.

The school must raise or cut some combination of $8 million to balance its operating budget by March.

“2020 will be a pivotal year in history of B-CU,” Chrite wrote in the letter dated Jan. 27. “It will be the year our beloved university prepared to close its doors or it will be the year we turned a corner and began moving toward an exciting future.”

[cx500d]

There goes a bunch of sports programs

[DFW HOYA]

This alarm should have been sounded much earlier. Giving alumni roughly a month to come up with $8 million before accreditation isn't a good sign.

The key numbers:

Last April, B-CU had reported receiving 40% fewer applications for the fall semester than it had at the same time in 2018. However, officials at the time expected to enroll about 3,800 students last fall. The actual numbers in February 2020: a headcount of 2,702, with full-time equivalent of 2,652. The 2020 enrollment is down about 20% from the same time last year."

FWIW, B-C spent $14.4 million on athletics in 2017-18, $4.7 million of that on football.

[citdog]

They need one of those "classics" I hear so much about or a bowl to celebrate. Either of those should raise a couple of gorillion dollars to keep the school open right?

[walliver]

The current president has reduced the operating deficit from $20M to $8M. How does a school get into that kind of debt to begin with? This probably explains it: https://www.news-journalonline.com/news/20180216/lawsuit-b-cu-defaulting-on-306m-dorm

It sounds like the same type of corruption that hurt SC State several years ago.

[DFW HOYA]

The current president has reduced the operating deficit from $20M to $8M. How does a school get into that kind of debt to begin with? This probably explains it: https://www.news-journalonline.com/news/20180216/lawsuit-b-cu-defaulting-on-306m-dorm


The scheme over the apartments doesn't help but much of it is probably outside the operating budget during litigation. What ails Bethune Cookman is what eventually did in Morris Brown College...cash flow.

Fewer students enrolling equal less tuition, and for a school with an endowment of just $47 million, it becomes a race to the bottom. People aren't going to enroll in a school that could lose accreditation. When that decision comes, the students will scatter quickly, because the federal aid will no longer be offered there. Raising $10 million from alumni by April (and at $2.5M through January they aren't close) doesn't solve the problem.

And this problem isn't unique to Bethune-Cookman, only that it doesn't have the state bailing them out. Western Illinois, for instance, has lost a third of its enrollment over the past decade.

https://www.chicagotribune.com/news/ct-niu-standardized-tests-20200130-megup7ivybbd3fpskbowrp5lqy-story.html

[PAllen]

I had no idea BCU was that small.

[Professor]

Exactly

[Anthony215]

I always thought BCU was a larger school with a population around 10k never thought it was that small. I strongly suspect that may drop athletics for a year or two to see if they can reduce the debt if they get to keep accredidation next month. What's insane is that cutting football means there are 50 males probably leaving the school to continue their football careers. Also that classic game with FAMU every year probably funds 40% of the athletics budget for the year. Due to Title IX I believe if they cut sports mens football would have to be one of them but they also run the risk of dropping enrollment even more. Maybe they cut all mens sports except football/basketball, and on the female side they eliminate 2 sports to cut cost while also not losing too many athletes to transfers. I wonder how many football scholarships BCU is actually giving out with their current financial situation

[Redbird 4th & short]

The scheme over the apartments doesn't help but much of it is probably outside the operating budget during litigation. What ails Bethune Cookman is what eventually did in Morris Brown College...cash flow.

Fewer students enrolling equal less tuition, and for a school with an endowment of just $47 million, it becomes a race to the bottom. People aren't going to enroll in a school that could lose accreditation. When that decision comes, the students will scatter quickly, because the federal aid will no longer be offered there. Raising $10 million from alumni by April (and at $2.5M through January they aren't close) doesn't solve the problem.

And this problem isn't unique to Bethune-Cookman, only that it doesn't have the state bailing them out. Western Illinois, for instance, has lost a third of its enrollment over the past decade.

https://www.chicagotribune.com/news/ct-niu-standardized-tests-20200130-megup7ivybbd3fpskbowrp5lqy-story.html


part of the problem in state of Illinois stems from the state reneging on subsidies at both college and HS levels. So any school that was struggling to meet their budget was really hurt by this. WIU, NIU, EIU, and SIU were all struggling and so lack of committed state funding really hurt these schools. U of I and ISUr were doing well financially, so lack of state funding hurt, but they were able to absorb it and have thrived by comparison. The new governor is trying to find new sources of revenue for the state .. but these ideas have some downside .. legalized marijuana, more gambling. He's also proposed a more progressive tax plan. Bottom line, the state of illinois has serious budget problems. And this has hurt most mid-sized colleges that were already struggling. So now they are making it easier for students to get accepted to help enrollment .. and the downward spiral continues.

https://1.bp.blogspot.com/-OUVeJUBl6s8/UIAWPDKPf2I/AAAAAAAACcE/LcQL-_H_hBQ/s1600/110913-animal-house2.jpg

[WestCoastAggie]

part of the problem in state of Illinois stems from the state reneging on subsidies at both college and HS levels. So any school that was struggling to meet their budget was really hurt by this. WIU, NIU, EIU, and SIU were all struggling and so lack of committed state funding really hurt these schools. U of I and ISUr were doing well financially, so lack of state funding hurt, but they were able to absorb it and have thrived by comparison. The new governor is trying to find new sources of revenue for the state .. but these ideas have some downside .. legalized marijuana, more gambling. He's also proposed a more progressive tax plan. Bottom line, the state of illinois has serious budget problems. And this has hurt most mid-sized colleges that were already struggling. So now they are making it easier for students to get accepted to help enrollment .. and the downward spiral continues.

https://1.bp.blogspot.com/-OUVeJUBl6s8/UIAWPDKPf2I/AAAAAAAACcE/LcQL-_H_hBQ/s1600/110913-animal-house2.jpg

Bethune's cash flow got hammered when their former president signed onto a crooked form deal that ballooned to a $300 Million Dollar bondoogle that they're tied up in court over.

[ST_Lawson]

Maybe they cut all mens sports except football/basketball, and on the female side they eliminate 2 sports to cut cost while also not losing too many athletes to transfers.

I don't know that they could cut that much:

Every Division 1 school has to sponsor at least 7 sports for men and 7 seven sports for women (or 6 men and 8 women). At least 2 of the sports for both men and women need to be team sports. Each sports season–Fall, Winter and Spring–needs to be represented by both men’s and women’s sports.
Source: https://www.athleticscholarships.net/question/what-is-ncaa-d1

(https://www.athleticscholarships.net/question/what-is-ncaa-d1)The sports they currently have are:
Men - Baseball, Basketball, Cross Country, Football, Golf, Tennis, Track & Field
Women - Basketball, Bowling, Cross Country, Golf, Softball, Tennis, Track & Field, Volleyball

So, they could cut one men's sport to get down to the minimum for DI if they stay at 8 for the women. Or, they could cut a women's sport to be at 7 and 7, but I think that'd probably screw up the scholarship balance. If they're wanting to really save money, cutting football probably would save the most. Alternately, if they don't want to get rid of football, they could go the Savannah State route and drop down to DII. They could rejoin the SIAC (https://en.wikipedia.org/wiki/Southern_Intercollegiate_Athletic_Conference), of which they were a member from 1950-1979, which has the majority if it's members in Georgia and Alabama (although there's also representation in TN, SC, KY, and OH), and all but one are HBCU's.

[Redbird 4th & short]

Bethune's cash flow got hammered when their former president signed onto a crooked form deal that ballooned to a $300 Million Dollar bondoogle that they're tied up in court over.

yep, I did a quick scan of the article ... committing to spend that kind of money on a dorm when you're struggling, just not smart. Nor by the developer, who apparently didn't care to honestly evaluate the BCU's financials before agreeing to terms ... not surprising they defaulted. Both sides were stupid, and apparently corrupt, though I didn't follow that aspect.

[WestCoastAggie]

I don't know that they could cut that much:

Source: https://www.athleticscholarships.net/question/what-is-ncaa-d1

(https://www.athleticscholarships.net/question/what-is-ncaa-d1)The sports they currently have are:
Men - Baseball, Basketball, Cross Country, Football, Golf, Tennis, Track & Field
Women - Basketball, Bowling, Cross Country, Golf, Softball, Tennis, Track & Field, Volleyball

So, they could cut one men's sport to get down to the minimum for DI if they stay at 8 for the women. Or, they could cut a women's sport to be at 7 and 7, but I think that'd probably screw up the scholarship balance. If they're wanting to really save money, cutting football probably would save the most. Alternately, if they don't want to get rid of football, they could go the Savannah State route and drop down to DII. They could rejoin the SIAC (https://en.wikipedia.org/wiki/Southern_Intercollegiate_Athletic_Conference), of which they were a member from 1950-1979, which has the majority if it's members in Georgia and Alabama (although there's also representation in TN, SC, KY, and OH), and all but one are HBCU's.

Bethune Cookman spends over $4 million on Football. They could technically stay D1 by cutting football. Interestingly enough, the private firm that now owns the football stadium they are renting want to sell it and build a sports complex in another part of Daytona Beach. IMHO, this firm knows somethings about to come down and they seem to be jumping ahead of the curve.

[MSUBobcat]

The scheme over the apartments doesn't help but much of it is probably outside the operating budget during litigation. What ails Bethune Cookman is what eventually did in Morris Brown College...cash flow.

Fewer students enrolling equal less tuition, and for a school with an endowment of just $47 million, it becomes a race to the bottom. People aren't going to enroll in a school that could lose accreditation. When that decision comes, the students will scatter quickly, because the federal aid will no longer be offered there. Raising $10 million from alumni by April (and at $2.5M through January they aren't close) doesn't solve the problem.

And this problem isn't unique to Bethune-Cookman, only that it doesn't have the state bailing them out. Western Illinois, for instance, has lost a third of its enrollment over the past decade.

https://www.chicagotribune.com/news/ct-niu-standardized-tests-20200130-megup7ivybbd3fpskbowrp5lqy-story.html

University of Montana is also struggling to attract students. "The Chronicle of Higher Education reported that from 2011 to 2017, UM lost more undergraduates than any other flagship state university in the United States. As of this fall, UM lost more than 40% of its undergraduates in 8 years." As you mention, UM does have the State backing them and nearly a nearly $200M endowment, but they need to make drastic improvements to remain economically viable.

https://missoulian.com/news/local/university-of-montana-enrollment-decline-severe-but-montanans-see-signs/article_64a9aa85-e85a-571b-80a8-d7c34d051921.html.

[dbackjon]

University of Montana is also struggling to attract students. "The Chronicle of Higher Education reported that from 2011 to 2017, UM lost more undergraduates than any other flagship state university in the United States. As of this fall, UM lost more than 40% of its undergraduates in 8 years." As you mention, UM does have the State backing them and nearly a nearly $200M endowment, but they need to make drastic improvements to remain economically viable.

https://missoulian.com/news/local/university-of-montana-enrollment-decline-severe-but-montanans-see-signs/article_64a9aa85-e85a-571b-80a8-d7c34d051921.html.


200 million - you think it would be higher for a state flagship.

[cx500d]

University of Montana is also struggling to attract students. "The Chronicle of Higher Education reported that from 2011 to 2017, UM lost more undergraduates than any other flagship state university in the United States. As of this fall, UM lost more than 40% of its undergraduates in 8 years." As you mention, UM does have the State backing them and nearly a nearly $200M endowment, but they need to make drastic improvements to remain economically viable.

https://missoulian.com/news/local/university-of-montana-enrollment-decline-severe-but-montanans-see-signs/article_64a9aa85-e85a-571b-80a8-d7c34d051921.html.

thats what they get with a liberal arts focus. The future is stem and UM isn’t there. Same with South Dakota.

[caribbeanhen]

kids are learning that College is a rip off.... a lot of them anyway.....