12-18-2023, 09:37 PM
Looks like PUG finances are in shambles.
https://www.forbes.com/sites/dereknewton...ba40687998
It’s a bill that, according to the rules that established Purdue Global, neither Purdue University nor the taxpayers of Indiana can pay. They are not allowed to cover Purdue Global’s debts and losses.
Purdue Global, the report says, had a “net operating revenue” loss of $95 million, it has about $142 million in current liabilities, and just $2.6 million in the bank. Purdue Global has a net negative financial position of $38.8 million. In 2022, the net financial position was also negative, at about $32 million. In other words, even though the report shows that it cut spending, Purdue Global’s financial position has moved downward year over year. That’s despite a reported 5% increase in enrollments at Purdue Global, according to the GHC document.
The position of Purdue Global and the size of the debt may make it unrecoverable, a reality GHC told its shareholders. “The Company will continue to assess the collectability of the fee with Purdue Global on a quarterly basis to make a determination as to whether to record all or part of the fee in the future,” GHC wrote.
Back in 2017, when the deal was announced, many celebratory forecasts and predictions were made. None of them involved Purdue Global losing money and defaulting on its debt. For former Purdue President Mitch Daniels, who invested his and Purdue’s reputation on the success of this venture, the upside-down finances and unpaid debt aren’t flattering.
“Purdue Global continues to struggle financially, unable to pay its bills to Kaplan,” said Dahn Shaulis, Editor of the Higher Education Inquirer and early skeptic of the Purdue Global arrangement. “It hasn't been the money maker that Mitch Daniels thought,” he said.
https://www.forbes.com/sites/dereknewton...ba40687998
It’s a bill that, according to the rules that established Purdue Global, neither Purdue University nor the taxpayers of Indiana can pay. They are not allowed to cover Purdue Global’s debts and losses.
Purdue Global, the report says, had a “net operating revenue” loss of $95 million, it has about $142 million in current liabilities, and just $2.6 million in the bank. Purdue Global has a net negative financial position of $38.8 million. In 2022, the net financial position was also negative, at about $32 million. In other words, even though the report shows that it cut spending, Purdue Global’s financial position has moved downward year over year. That’s despite a reported 5% increase in enrollments at Purdue Global, according to the GHC document.
The position of Purdue Global and the size of the debt may make it unrecoverable, a reality GHC told its shareholders. “The Company will continue to assess the collectability of the fee with Purdue Global on a quarterly basis to make a determination as to whether to record all or part of the fee in the future,” GHC wrote.
Back in 2017, when the deal was announced, many celebratory forecasts and predictions were made. None of them involved Purdue Global losing money and defaulting on its debt. For former Purdue President Mitch Daniels, who invested his and Purdue’s reputation on the success of this venture, the upside-down finances and unpaid debt aren’t flattering.
“Purdue Global continues to struggle financially, unable to pay its bills to Kaplan,” said Dahn Shaulis, Editor of the Higher Education Inquirer and early skeptic of the Purdue Global arrangement. “It hasn't been the money maker that Mitch Daniels thought,” he said.
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