I’ve been writing a lot of about college finances, most recently for Belt, and most of the stories of trouble colleges follow a predictable combination of enrollment dropoff and financial shortfall. The announced closing of Sweet Briar College in early 2015 deviated from this. Enrollment was declining, but the financial position was okay. What was the Sweet Briar Conspiracy Theory?
I don’t use that phrase lightly. Something was off about the announcement, because the college endowment of $90 million or so was more than enough to keep operations going for a few more years. Yes, it is a bold move to shut down when a business is in decline but not in crisis, and more businesses and non-profits should consider it. But no one does it. It’s so counter to management practice that it stands out. The campus hadn’t asked its alumnae for assistance. Yes, women’s colleges have been struggling, but couldn’t some work be done on a merger or restructuring of the campus? At a minimum, why not keep Sweet Briar open so that those already enrolled could graduate? The money was there. Maybe Sweet Briar had to close sooner or later, but why so quickly?
A lot of observers in higher ed have been scratching their heads. The usual research tactic is to follow the money. Who would benefit? When a non-profit shuts down, it usually has to see that its funds are distributed in a way that the mission of the organization continues. In some cases, funds have to be returned to donors. The trustees of the campus aren’t going to receive some big payout.
In addition to the endowment, Sweet Briar sits on a lovely piece of land. That could be sold, and then the proceeds would be part of the assets distributed to fulfill the mission of the school. It is unlikely that any specific individual would benefit.
A new theory has emerged, which makes some sense: Sweet Briar will be the site of the proposed Disney’s America amusement park. The location and size of the parcel would fit Disney’s ambitions.
But the question remains: who, besides Disney, is the beneficiary? Until that part is sorted out, this is just a rumor. But it’s interesting, isn’t it?
