ODU Financial Concerns?

[Fightingscot82]

Ohio Dominican missed a payment on a $50M bond it took out in 2018. I can't find an article that isn't behind a paywall. In the last decade, enrollment is down 50% to 1,200.

ODU claims they're not at risk of closing. I hope that's not the case. However, they do fit the profile of colleges that are closing. Flagging, small enrollment (1,000 or less). Tuition dependent and financial aid is based on sticker price discounting, not scholarship donations. Speaking of, small endowment (ODU is just $19M). Lastly, bland and unremarkable academic array (no magnet programs that set it apart from most other 4 year colleges).

[therealignmentreport1]

Here is one I saw
https://www.insidehighered.com/news/...s-bond-payment

[Bballfan]

It has been known for awhile that Ohio Dominican is in dire financial straights. The same can be said for other GMAC schools including Lake Erie and Kentucky Wesleyan. Ursuline will survive, but now that they are bought out by Gannon, despite what they say, I wonder if they will continue to be an independent institution or eventually just be a branch of Gannon.

If the Catholic church pulls out their support of Ohio Dominican (as they have at many other colleges across the country), that will be the end of ODU. It will be a repeat of Notre Dame College. Wheeling University (formerly Wheeling Jesuit before the Catholic church cut funding) is another school on death watch.

[Bballfan]

Following more on this story....looks like the Higher Learning Commission has a report coming out on ODU later this month.

Ohio Dominican University | The Higher Learning CommissionOhio Dominican University | The Higher Learning Commission

Doing some other digging, it does not look good. Lot of rumors flying around out there.

Over the last 10 years, their enrollment numbers are down over 50%. Only the athletes are propping the school up, and that simply is not a sustainable model.

I could definitely see them calling it quits at the end of this academic year.

[BlueBlood]

The article says they are working with the bondholder (presumably to renegotiate terms). However, it's really difficult for a school to recover once this "death watch" news cycle starts. There are obviously underlying problems that led to this point. Now, they will need to combat both those problems AND negative press/"word on the street". At this point, many kids will probably only want to go there if it is their obvious "best offer" or "most money". And offering the "most money" obviously doesn't help the schools economics.

According to the Dept of Education, ODU has 734 full-time undergraduates, and 434 of them are NCAA student athletes.

[Fightingscot82]

The article says they are working with the bondholder (presumably to renegotiate terms). However, it's really difficult for a school to recover once this "death watch" news cycle starts. There are obviously underlying problems that led to this point. Now, they will need to combat both those problems AND negative press/"word on the street". At this point, many kids will probably only want to go there if it is their obvious "best offer" or "most money". And offering the "most money" obviously doesn't help the schools economics.

According to the Dept of Education, ODU has 734 full-time undergraduates, and 434 of them are NCAA student athletes.

And many private schools in this situation start increasing their average discount rate closer to 60% off MSRP, leaving revenue on the table, and a gamble that may not pay off. At these schools, athletics is just another way to sell discounted private school tuition to everyday people. The average net price paid for D2 athletes at private colleges is nearly the same as every other student.

[Bballfan]

They are also sitting on some pretty valuable property. Between the airport and downtown. It isn't in the best part of town, but a good location nevertheless.

I agree with once the negative press has started, along with the Higher Learning Commission report that will come out shortly (and they ding for bad financials), they are going to be like Wheeling College shortly. And Wheeling was a pretty good school until the Catholic money got pulled. They have been fighting for their survival now for a few years, and it doesn't seem to be getting any better.