FB: Southern Athletic Association

[Ron Boerger]

"Yes, we accept you as a member of the class of 2027 but have your backup plans ready just in case" - I wonder if they have informed these kids of the significant chance they'll have to go elsewhere at the last second if they don't raise the needed funds?  According the article below "[r]esearch indicates students whose colleges abruptly closed reenrolled at other institutions at much lower rates than those whose colleges shut down in an orderly fashion. Just 4 in 10 students who went through a sudden closure reenroll, compared to more than 6 in 10 who reenroll after orderly closure."  Same article says over 3,000 prospective students applied in the fall, 1,726 were accepted, and 244 enrolled.  With a a 2021 enrollment of 1058 that's probably at least as many as enrolled in recent falls and I'd think a few more.

Here's another article from Higher Ed Dive.   Basically it comes down to get nearly $40M from the state legislature or fold.   "[W]e expect to know something more definitive by the time the Alabama Legislature convenes on March 7, if not before" says B-SC president Daniel B. Coleman (also quoted in the article jknezek posted).

Prove me wrong, lawmakers of Alabama.  Show that you actually give a damn.

[Ron Boerger]

Prove me wrong, lawmakers of Alabama.  Show that you actually give a damn.

Narrator:  Sadly, they would not.

AL.com:  Alabama lawmakers say outlook doubtful for $30 million bailout for Birmingham-Southern

[BSCpanthers]

My expectations are falling that BSC will survive this.  The short sightedness from some of the local elected officials is surprising.  I read somewhere that the representatives of the area that BSC is located are not supporting this because the school doesn't represent their constituents, meaning people that live in their area don't get any benefit from the school. But they really need to look at the fact the school is there, what will be there when they close???  It is in a suppressed area, which is why you'd want to see BSC stay to keep hope in that community. 

I'm thoroughly disappointed in this, mostly for the kids that are currently attending school there and losing their home for the last couple years.  The current Juniors May have it the worst.  One year from graduation, lost their senior year in high school to Covid, freshman year in college was quiet with not on campus events and limited to no attendance to sporting events, and not this hanging over their junior year with no senior year to come. 

[jknezek]

My expectations are falling that BSC will survive this.  The short sightedness from some of the local elected officials is surprising.  I read somewhere that the representatives of the area that BSC is located are not supporting this because the school doesn't represent their constituents, meaning people that live in their area don't get any benefit from the school. But they really need to look at the fact the school is there, what will be there when they close???  It is in a suppressed area, which is why you'd want to see BSC stay to keep hope in that community. 

I'm thoroughly disappointed in this, mostly for the kids that are currently attending school there and losing their home for the last couple years.  The current Juniors May have it the worst.  One year from graduation, lost their senior year in high school to Covid, freshman year in college was quiet with not on campus events and limited to no attendance to sporting events, and not this hanging over their junior year with no senior year to come.

It's a raw deal for the students. It always is when a school closes. B-SC wasn't exactly known for playing nice with the surrounding area, so I'm sure that is part of the issue as well. There was no gown/town relationship. B-SC is a walled off island, kind of out of necessity, but it still wouldn't look good to the local populace. And given their 20 year financial struggle, I doubt they were in much of a position to give back to the community in any way it would remember or appreciate.

But yeah, it's a cut your nose off to spite your face situation, because that property, and Legion Field, are the major things going in that area. To lose one of them isn't going to help an area that is already suffering, and I'm not really sure what makes keeping Legion Field open a good idea, other than it's a political disaster for whatever Mayor decides to shut it down.

If the worst comes to pass, B-SC isn't going to be the first school to close, nor the last, over the next 20 years. Higher Ed is hitting a serious challenge point, thanks to a combination of demographics and self-inflicted pain. It's been a long time coming, and I suspect the casualties will be numbered in the dozens, at least.

Form the parent side, it's real hard to get excited 17 and 18 year olds to care about things like the school's endowment when they have other things on their minds, but if a Private School is packing less than $200MM, I'd be real skeptical about sending my kid. I'm not sure it's a very sound investment in their future.

[Ralph Turner]

I appreciate your opinion of the Endowment threshold being $200M.

[jknezek]

I appreciate your opinion of the Endowment threshold being $200M.

That's not a minimum it will take to survive, the number is probably far smaller for well-managed institutions without significant debts and with significant enrollment. It's just the minimum value that I'd feel comfortable with investing 100k (or a lot more) of my money, over 4 years, in my kids' education so I'm comfortable it won't be interrupted halfway through by the panic button B-SC finally hit in December. I feel like if you've got 200 in the endowment, you've got at least 4 years before you can screw up bad enough that the padlock comes out!

[Hawks88]

Another new article this morning that doesn't look good for our friends in B'ham.

https://1819news.com/news/item/i-think-that-ship-has-sailed-senate-education-budget-chair-state-sen-orr-says-no-appetite-for-birmingham-southern-bailout

[BSCpanthers]

Another new article this morning that doesn't look good for our friends in B'ham.

https://1819news.com/news/item/i-think-that-ship-has-sailed-senate-education-budget-chair-state-sen-orr-says-no-appetite-for-birmingham-southern-bailout

So depressing and disappointing.

The students have started joking about staying on campus after it closes to "defend the hilltop".

[UMHB03]

Another new article this morning that doesn't look good for our friends in B'ham.

https://1819news.com/news/item/i-think-that-ship-has-sailed-senate-education-budget-chair-state-sen-orr-says-no-appetite-for-birmingham-southern-bailout

So depressing and disappointing.

The students have started joking about staying on campus after it closes to "defend the hilltop".

Very sad indeed. I can't imagine how heartbroken I would be if this was happening at my almamater.

[awadelewis]

Another new article this morning that doesn't look good for our friends in B'ham.

https://1819news.com/news/item/i-think-that-ship-has-sailed-senate-education-budget-chair-state-sen-orr-says-no-appetite-for-birmingham-southern-bailout

Senator Orr is the chair of the Board of Trustees for my employer (mentioned in the article as the school taken over in the past by the state).    He's been pretty consistent in what he's been saying about B-SC's request for a state bailout.   And he's one of a group of three to five legislators here in Alabama who would have to back a bailout to get it through in this legislative session.      Not looking good and I'm getting more sad over it.

[jknezek]

I think the comment about the Birmingham area delegation not supporting the effort is the most telling. This just isn't something backed by the community. Either B-SC finds a private donor or a private bridge loan, or they are done.

[BSCpanthers]

BSC needs to promote themselves as a financial boost to the impoverished neighborhood they are located.  They are jobs, not just professors, but also security, custodial, cafeteria staff, grounds keepers, maintenance.  All those jobs will be lost, as well as the 1,200 people that are around that campus using gas stations and eating at the Popeye's right off of campus.  That neighborhood will lose that money, money it can't really afford to lose.  As much as some have complained that it is a gated fortress to keep out the people in that neighborhood, it provides more financial support than a dilapidated Legion Field that the city is paying another $5mil to keep going, for some reason.

[cush]

I don't really understand how BSC can have $45 million in pledges and not try to collect, got to believe that amount would give them several years of being able balance the books. BSC goal is what $200 million by 2026, why not make it $150 million and try to collect the pledges now. Obviously, they also need to highlight urban renewal to any rich foundation or billionaire for any chance of a large donation. The last option is to get the state to takeover the school. My guess is the state wouldn't let the camps sit idle, either run it independently or merge it into another school.  I do wonder if the SAA would want a public school if the state took over BSC

[jknezek]

I don't really understand how BSC can have $45 million in pledges and not try to collect, got to believe that amount would give them several years of being able balance the books. BSC goal is what $200 million by 2026, why not make it $150 million and try to collect the pledges now. Obviously, they also need to highlight urban renewal to any rich foundation or billionaire for any chance of a large donation. The last option is to get the state to takeover the school. My guess is the state wouldn't let the camps sit idle, either run it independently or merge it into another school.  I do wonder if the SAA would want a public school if the state took over BSC

Because that 45MM is pledged to the endowment, not to immediate expenses, and it's contingent on B-SC surviving and getting the 200MM in pledges it needs to stay open long term. People won't donate if they feel they are just throwing good money down a black hole.

B-SC needs a bridge loan of 40MM for immediate expenses to keep the lights on the staff paid, but they are a risky borrower, that credit markets don't want to lend to. The state doesn't see it as their job to lend the money. Donors don't tend to loan toward unsexy things like current bills. They donate toward long term ideals.

[Ralph Turner]

+1 jknezek!