C. Scott Green is the President of University of Idaho. Green was hired in 2019 into a difficult financial situation for the University. Add to that the challenges created by the pandemic and it called for unique leadership. Green graduated from U of I, born in Moscow, he is a loyal Vandal. He went on to a distinguished career with Boise Cascade, Deloitte, Goldman Sachs, and in Executive leadership roles as Chief Administrative Officer and later as CEO of a multinational Law Firm. Green was chosen for the role at U of I in spite of him not holding a doctorate degree or having experience in higher education. Green did earn an MBA from Harvard Business School. A non traditional University President turned out to be just the ticket to jump start the University and return it to financial and cultural stability, poised for future uncertainty.
In a recent discussion with the Idaho Business for Education Executive Committee, Green described the controversial agreement to purchase the University of Pheonix through the creation of an independent not for profit organization. The two entities will collaborate through an affiliation agreement that will benefit both institutions. Pheonix serves over 85,000 students primarily online with proven student success rate. The U of I and all of Idaho will benefit from their innovative expertise and advanced technology platforms. In addition, Pheonix is contracted at a price that provides a very attractive 2.5 X EBITDA. (Earnings before interest, depreciation, taxes, depreciation and amortization). The price is reflective of the ownership by a private equity firm that have a termination date and must sell. It is not a distressed investment.
There is nothing furtive about the deal and you can go to uidaho.edu FAQ to do your own research. The State Board of Education has evaluated the due diligence done by the U of I team and is fully supportive of the purchase. Please encourage your friends to learn the facts and support the purchase.
What’s coming for higher education. Part of the motivation for this affiliation is the coming enrollment cliff. It is projected that there will be a significant decline in students in schools due to the declining birth rates and higher costs. Hats off to U of I and its leadership team for looking into the future. We must improve our rural go on rates and this affiliation is a crucial tool in getting students started in school and keeping them through achievement of a certificate or degree.
In addition to the facts which explain the risks and rewards of the investment, I offer one other tip. If the Attorney General of Idaho is against it, it is very likely the right thing to do. Let’s not get distracted by those with their own self serving agenda.
Keep Israel and the Ukraine in your thoughts and prayers. The United States leadership is critical to keeping our world from spiraling into total disarray.
Enjoy the fall, Margie demonstrates the value of leaves. Mike