Saint Augustine’s University has been experiencing financial difficulties for quite some time, but it seems like that is about to change. 50 Plus 1 Sports, a Black-owned development company, invested $70 million to help save the university. Last year the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) revoked Saint Augustine’s membership due to its financial issues, including problems with the IRS and a $32 million debt.
“We were introduced to the University back in October, and from that very first moment, our first statement was that we wanted to help the university keep its land and be self-sufficient,” Monti Valrie, founder and CEO of 50 Plus 1 Sports, told BLACK ENTERPRISE.
The Miami-based development company is one of the fastest-growing stadium and mixed-use development firms in the country. It’s made history as the first national sports financing and development firm that requires 50% minority and women participation in all of their projects.
The ground lease agreement between 50 Plus 1 Sports and Saint Augustine’s will allow 50 Plus 1 Sports to develop on the university. Since 50 Plus 1 Sports provided the ground lease payment upfront, thus allowing the university to clear its $32 million debt. The two will enter a 65/35 split on revenue, and after 10 years that split will change to 60/40.
“Our estimates at year 50 are over a billion dollars back to the university in revenue split,” says Valrie. “This gives the university the opportunity to carry out their mission in the community.”
Businesses in Raleigh have tried to help Saint Augustine in the past but hit some roadblocks. They sought financial assistance from Self-Help Credit Union in February of last year, but the deal fell through after the credit union learned that the university’s land was appraised for $207 million. According to Board of Trustees Chairman Brian Boulware, the credit union, along with other local investors, planned to loan the university between $20 million and $30 million.
As a part of the deal, the land that sits within one mile of the Governor’s Mansion would have to be removed from Saint Augustine’s name in addition to two board members being removed. The investors would have also chosen the president of the university and board chair. Saint Augustine’s would have received no revenue share as well. At one point, local business leaders suggested that the university merge with Shaw University to help with financial troubles.
Now that the deal with 50 Plus 1 Sports is underway, the university is waiting for the attorney general to approve the agreement. If approved, the agreement “would resolve debt, provide critical operational funding, establish a revenue-sharing model that secures universities financial sustainability for decades to come, and bring in opportunities for students, scholarships, community engagement, and economic development beyond the university and into Raleigh,” said Board Member Sophie Gibson.
