A few questions Arkansas citizens would like to know if the University of Arkansas, or its not-for-profit affiliate, is going to buy the University of Phoenix:
First, how much are they proposing paying the current owner, the Apollo investment fund in New York, for the University of Phoenix?
Second, how much in liabilities does the University of Phoenix have, especially as long-term debt, and how much will the U of A or its nonprofit affiliate assume in liabilities?
Third, how much in bonds will the University of Arkansas or its nonprofit affiliate issue to acquire the University of Phoenix?
Fourth, if they do issue bonds, will they be general obligation bonds of the University of Arkansas, or will they be revenue bonds? If revenue bonds, will the revenues from the University of Phoenix cover all the principal and interest payments, and if so, by how much?
If not, will the University of Arkansas help cover the payments? If there is a future default on the bonds or any debt for the acquisition, what would that do to the reputation of the U of A?
Fifth, it is said the University of Phoenix, once acquired by the University of Arkansas or its non-profit affiliate, will pay the University of Arkansas $20 million a year. Is that a guarantee, or an estimate?
Whether the University of Arkansas or its affiliated non-profit should acquire the University of Phoenix remains a good subject for debate. But before that debate results in a decision by the University of Arkansas board of trustees, these questions need to be answered. And shared with the people of Arkansas.