Amid a critical accreditation vote next month, Saint Augustine’s University (SAU) finds itself in an increasingly precarious position after a series of financial decisions failed to stabilize its operations. The historically Black institution in North Carolina has taken controversial steps, including securing a high-interest loan and attempting a long-term lease deal with a Florida-based company, both of which have faced significant opposition. With the North Carolina attorney general rejecting the lease agreement, SAU now faces a race against time to secure its future.

In recent months, SAU has pursued several measures to address its financial instability. Last fall, the university secured a $7 million loan from Gothic Ventures, a move that sparked criticism due to its 24% interest rate and additional fees. Critics labeled this as predatory lending, while SAU defended it as necessary for maintaining educational services. This was followed by a $70 million deal with 50 Plus 1 Sports, a relatively unknown Florida company, to lease and develop university property for 99 years. However, this arrangement was rejected by the state attorney general over concerns about insufficient documentation and the low payout relative to the campus's appraised value of $198 million.

The challenges facing SAU extend beyond just financial issues. In December 2023, the Southern Association of Colleges and Schools Commission on Colleges voted to strip the university of its accreditation due to governance and financial problems. While SAU won a temporary reprieve in court, the accreditor will reconsider its appeal next month. Under interim president Marcus Burgess, the university has also dealt with a $7.9 million tax lien and declining enrollment, dropping from over 1,100 students in fall 2022 to around 200 last fall.

Further complicating matters, SAU turned down a more favorable loan offer from Self-Help Credit Union, which required two board members to resign. The university's rejection of these conditions raised questions about its leadership and decision-making processes. Additionally, the North Carolina attorney general expressed concerns about SAU's due diligence in evaluating the 50 Plus 1 Sports deal, particularly regarding the company's financial capabilities and experience.

With the 50 Plus 1 Sports deal off the table and the accreditation vote looming, SAU must urgently find alternative solutions to demonstrate financial sustainability. The university remains committed to working with the attorney general's office but faces a tight deadline to provide necessary documentation or renegotiate terms. Experts like Mark DeFusco suggest that SAU's financial troubles may be too deep-seated to resolve without significant changes in leadership and governance. As the clock ticks down, the future of this historic institution hangs in the balance.