Private College Financial Crisis? We look at the financial health of Hobart William Smith College

It is a Tuesday in February. It must be time for the College Financial Health Show with Matt Hendricks and Gary Stocker. Hi everybody, thanks for making time to either watch the live version or the recorded version on the College Viability YouTube channel. This is, of course, the only show that I'm aware of, Matt, that looks at the financial health of private colleges today, and I believe public colleges sometime in the near future. And we use data, we use data that the colleges themselves submit from audited financial statements from 2016 through 2025. We use IRS 990s, and we also use data from the National Center for Education Statistics. And Matt, we had a college close a couple weeks ago, Lord's University, and it made the news not just because it closed, but because of their heavy reliance on sports. And there was a gentleman who does research on this and he's made the observation that if a college has more than 42% undergraduate students as student athletes, they're at financial risk. Matt Lourdes University had 72% student athletes. Let me just share my screen and show the audience what that looks like when you have financial issues. Now Matt has gone over this before and before he takes over for the rest of the show today, This is from Perspective Data Sciences Financial Compass. It's available for only $219 per subscription for 12 months. And as Matt always says, color is not good. And you can see on the right side how many issues that Lourdes University has across the board. And I'm not gonna go into those, Matt might do that here in a minute. But in every case of those financial, key financial measures that you see on this screen, Lourdes University is not gonna make it. And Matt, We could probably pull up other colleges that you and I know about that have similar profiles. And let me ask you a question. My perspective is, if you have a profile similar to one like Lourdes, boy, you really have to consider that college risky. Do you agree with that?

Yeah, I do. Yep, absolutely.

And so as you look at the numbers for Lourdes, or if you've, uh, if you've purchased the app look at them for your college and other colleges in your area to see which ones present a similar profile. If you haven't bought the app, if you haven't bought the Financial Compass, I'll be blunt, you're making a mistake. This data is something you can't get anywhere else. $219, Matt, is, I think you told me once before, is the same purchase price for the New York Times subscription for a year.

Yeah, I think so. Yeah, that's how the price—

the Financial Compass, your call. So anyway, the, the data is there. And Matt, you've heard me say we're in the Moneyball era. You have the data, I have the data, and today we're looking at a college in New York. And take us there.

Sure. I'll, I'll show one new feature of the financial compass before we go into Hobart Smith College. Um, I'll show the Lord's case in a new feature that we're developing. And, um, I just, uh, put this up right now. It's active for some of us to, to develop and make sure that these reports are, um, are good. But basically what there's going to be is, for example, Lords. You could just, uh, type in Lords, put it here, click this button, and it will generate a report for you that's very similar in terms of structure as to like what I walk you through on the, on this show. Um, and I think this is going to be a game changer for people that are not finance experts. They don't really want to click through all of these graphs and try to interpret them. Um, so with the AI, we have an AI report that will generate for you. And here's the example for Lords, and I'll just kind of show you what it looks like. Um, this generates in about 5 minutes, and what it does is do all the stuff that I was talking about. It clicks through, basically automated, clicks through and captures all of the images, the peer set, and lots of different key graphs from the financial compass, annotates them, and then generates a report based on what it sees compared to the peer group and the national median.

Stunning, stunning.

Characteristics. You can print this off, show it to your executive staff, show it to your board. And the really cool thing about this is a little bit scary, I will say, too, for me releasing this week. The AI is brutally honest. Right? It does not sugarcoat anything, and, um, and it normally is very, very close to what my opinion is of the school, but not always. So I put disclaimer there. But, uh, you can just see there's really— I ask it to generate really 3 paragraphs summarizing how healthy the school is in terms of financial, um, health, and then also operations. So we're looking at, you know, net asset changes, endowment growth, stuff like that, uh, revenue growth in the financial part. And then the operational part, it does, it takes a deeper dive into staffing levels if they're appropriate for the size of the school and the revenue, the vendor spend, enrollment changes, stuff like that. And it is, this is the text and you can just see it starts out right away just going into how Lawrence University is in a serious financial situation.

Yeah.

And goes into detail, cites exact numbers as to why that is. And actually, yeah, so it goes into operations. I know it's too late for this school, but there's going to be a lot of hints here as to where the management could go to make things better. It will flag, like I normally do flag a vendor contract, vendor usage that looks abnormal, staffing that looks abnormal, you know, looks at all revenue sources, private gifts and grants. Looks like the school was getting decent gift revenue right before they closed. That's actually pretty common, right? The alumni tries to save the school before it ultimately closes. And so that's sort of the cycle it went through. But I think these will be really useful for getting people on the same page at a school. And again, this AI doesn't care, right? It's going to be really blunt and objective, hopefully.

Matt, how do folks get access to this?

Yeah, so what we're going to do is— this is not available yet, so it's coming soon here. But what we're going to do is probably in the next week or two, roll this out to everybody. So if you have a subscription, you can get 2 free reports right away with your subscription. And beyond that, you can pay to add additional credits to get more reports down the line. But this data is continually updating. So if you're only interested in lords, for example, you may just generate one report for lords today and then wait, you know, 6 months and generate another report for lords. That would be considered 2 reports, and they'll be probably different because we're adding new data all the time as it's released. So it's a way to stay on top of what's happening at your school, and you don't have to be a financial expert. It breaks it down really simply for, for you as to what, what's going on. And I think it's going to be quite useful to schools.

Oh yeah, stunning, Matt. That's just stunning application of technology.

Yeah, thanks. Yeah, it's getting better all the time. But we've generated— at this point, I think I've generated probably 50 reports, and I haven't found any massive issues, not hallucinations that I've seen, although my partner's found one. So it's going to be pretty good. I think it's going to be a game changer and particularly useful for, well, really everybody, but folks that just don't have a lot of time to be— board members in particular, faculty that they're busy with their own research and teaching. Yeah. Yeah. It's a way to just get a really quick very quick, non-sugarcoated view of what's happening. And of course, the, the schools that are doing well, the AI says they're doing well. So, um, it's good on both ends for both schools that are about to close or have closed and schools that are doing quite well. Make sure to point those that out. So, um, watch for that, and, uh, we're excited about that rollout. So, Hobart William Smith College is in New York. And I'll go— let's start with the key metrics table and start with the ones that are flagged here. So again, everything that's flagged is probably something that needs to be looked at by the board and administration if they haven't already, and, and try to understand what's causing this and how to reverse it, right? Red is not good, or I guess it's kind of like a really light red or pink here. So in fiscal year 2024, this is flagged because they lost $10.5 million from operations in 2024. You can see that many years of losses here. $5 million, $1 million, $17 million, $1 million. So as you know, if you've watched the show, that's not normal. A normal net income from operations should always be positive. Always positive, right? And not only that, should have a bit of buffer, should be like a plus 1% if you divided that by operating revenue. So that's this next line. Net income margin should be about +1% on average and really never negative. And, you know, they're negative all the time. And we've got a negative 10% net income margin here in 2024. I don't have the '25 audit yet, but I'll be able to, you know, like I said, updating this almost weekly at this point. So we have fairly significant budget deficit, it appears. Um, and other things that could be related to this— obviously student enrollment is one. Uh, their enrollment's dropping fast, down 24% in just 5 years. That is very fast drop in enrollments, far more— far worse than normal. Uh, most schools are maintaining about the same amount of enrollment as they've had 5 years ago. Uh, I'll show you that in a second. Net student revenues are down 27%. So it's like mostly enrollment causing their net student revenues to fall, not really price, right? You can get divergence between net student revenues and enrollment if the price changes, but looks like they're pretty well aligned here. Um, financial stress shows up in a number of ways. Uh, one, you typically see the school not investing in the physical plant, and that's what you're going to see in this CapEx to depreciation ratio. This ratio should always be above 1, or at least on average over a 5-year period be above 1. And you can see it's never above 1 the last 5 years, and on average it's about 0.77. Um, and, and what that means in just plain English is that capital buildings, computers, things age, right, and deteriorate over time. Um, and What's basically happening is they're not investing to replace those items at the rate, same rate as they deteriorate generally. So that means you probably have deferred maintenance showing up, or, and/or just old technology, bad old computers and things like that. Yeah. Um, cash and investments, very important. Um, I was just on a call with bond investors. Is the only thing, only question a bond investor asked about was what is your cash and investments. So this is the one that care a lot about should be growing at least with inflation, and it's not. It's, it's actually shrinking in the last 5 years. Uh, huge red flag, especially since we've had double-digit inflation over the last 5 years. And other things are flagged here. The endowment value is also shrinking, um, and no shock there that they are, it looks like, trying to cover their deficits here by drawing more than normal from their endowment, maybe even borrowing from the endowment. which would show up in this number as well. Generally depends on how the accounting is done, but, um, this is flagged because it's higher than 4.5% or so, which is the norm for an endowment draw. So this is, uh, getting close to double that. Um, so lots of issues here. Endowment shrinking, and it all stems from having a, a budget that's not balanced. They're not able to replace their capital stock. And their endowment shrinking because they're using it presumably to cover the gap. All right, let's see what we can see when we look more closely at this. I'll just do a few things. By the way, this school doesn't have a long runway, it appears. This UNEP measure is— it's your unrestricted net assets. So the assets that are available to you, you don't have to ask for donor permission or anything like that. Or the attorney general to let them use it. But the problem with unrestricted assets is a lot of it is tied up into buildings, right? It's hard to get your money out of a building unless a bank is going to give you like a home equity loan kind of thing. Yeah, it's not— most banks don't want to do that. So we pull out essentially the value of the buildings, the equity value of the buildings, and this is what you're left with. And Hobart, Williams-Smith Colleges have about $32 million it appears in this UNEP metric, which is really a way to think about this, how much, um, cash, unrestricted cash or liquid assets they have to cover, um, traumatic events and cover deficits and so on. It's not very big. $32 million might sound like a lot, but remember their deficit was $10 million.

So yeah, do the math on that. That's not very long at all.

Not great. Um, so this, this school appears to have financial struggles and not a huge runway, right? They can't afford really to run these long deficits over a decade. Uh, it's going to be— it's not going to end well for them if they do that. So, uh, let's see if we can figure out how to help them balance the budget. I'm going to just jump right into the sort of operational part, and let's take a look at their expenses and revenues first. Operating 80 revenues. Whoops. Total operating revenue. And let's just look how that's changing over time. Yeah. Um, okay, so once again, remember the yellow line is their peer set, and this is the peer set for Hobart William Smith Colleges. And it's actually quite good peer set because these are double-confirmed peers. All of them are, which means Hobart said that Union College is a peer, and Union College also said Hobart is a peer. Same with Gettysburg, same with Trinity, and so on. Actually, these are sort of double confirmed through double confirmed, some of them, but St. Lawrence is a double confirmed. These are all really good. So, um, nice peer set here. Um, and it's really important that you track your performance against that set. A lot of them are your competitors, not just peers. So, um, yeah, Hobart Williams Smith falling well behind on revenue growth. Their operating revenue has actually fallen by 3% since 2016 while their peer set's up 17%. And that's about normal. Their peer set is about normal for the national sort of trend here. So we have expenses down 3%— or sorry, revenues down 3%. And let's take a look at expense side. So always good to start here because you get a sense of where to look, right? Is it going to be a revenue side issue, expense side issue, or both? Uh, and it's definitely going to be both here. Um, if you're doing you know, proper budgeting practices, you make sure that your expenses follow very closely with your revenues, uh, because of course you have a lot more, um, a lot more control, uh, over your expenses and, um, need to match that with your budget constraint essentially. Um, but their expenses are up 6% since 2016, yet remember the revenues are down 3%, so that disconnect is causing a problem here. Looks like they have done some expense management but have gone away from that recently, which is causing the bigger deficits to show up. All right. So both revenue and expense side issues. Let's take a look at the revenue side, starting with student revenues. And this is a big issue for them. Net student revenues are down. 40% almost since 2016. And notice again, their peer set is doing about normal, right? Their revenues or student revenues are up 5%. So major issue here at Hobart William Smith in terms of managing their student revenues. And it looks like it's all coming down to, or mostly coming down to enrollment changes. So remember this number, student revenues down 39%. Student revenues can go down if enrollment drops or if the price changes or both. Um, so let's take a look. 28% drop in FTE student enrollment and a really sharp drop here in 2021. Notice this pattern, how it drops sharply and then levels off. That's exactly what you expect if there's this one kind of shock that happens right here. One shock, and then that shock will play out for 4 consecutive years if you don't change it, and you get to a new steady state. So if I were them, I would highly recommend that they look at what happened here in 2020 and don't automatically assume that this is COVID-related, um, because look at your peer set— they did not experience that.

Interesting, interesting.

So this is important. Something, some kind of shock happened here in 2020, and there's lots of different things that can happen. You know, one thing that happened around 2020 was sort of related to COVID, that a lot of schools went to test optional, right? They waived all their application fees. They admitted a far higher percentage of students. If Hobart William Smith didn't do that, uh, that could explain this, right? If they're not test optional and stuff like that. I'm just guessing here, but I'm just based on things that I've seen. They still have an application fee. Everybody else dropped theirs. That could cause this as well. It's not necessarily them changing anything, it's just them not changing with what's happening. Interesting, right? So take a look at this time period is very crucial for them. Um, that's when their enrollment started to crater. And what would probably happen was that they had a tiny freshman class here and continued to have that small freshman class for the next 4 years, which causes FTE enrollment to sort of drop and then level off to a new steady state. Okay, so it's not all of the net tuition— net student revenue change though. This is 28%, so I bet their price changed a little bit. So let's go back to student revenues per FTE. Yeah, they used to charge about $40,000 per student on average, and now we're at $33,000. So we have a double whammy of reduced enrollment and a lower price per student on average, which is compounding this loss in student revenues. And notice again that their peers did not do that, actually have increased the price on average that a student pays, which makes sense. And most schools are doing that. You can see the national median here going from $20,500-ish to $22,800. So it seems they have issues probably with the enrollment funnel. And also with the financial aid strategy at the same time. So both would need a serious look. And my guess is again that when you drop your price well below your competition, which I'm assuming some of these peers are competitors, it doesn't help you much, right? You're already probably the cheapest in this set. Actually, I can check that really quick. They're very close to the cheapest in this set. Only Gettysburg College is less. So it, it, it provides this sort of buffer range generally where you can increase your price and not see much change in quantity demanded, sort of like a vertical demand curve for a range, right? At least. So they may experiment with a higher net price here, getting back closer to this $39,000 or so. That would still be quite low, but, uh, relative to their peers, but, uh, could provide a boost in revenue without really impacting enrollment much.

And Matt, you're not going to be surprised, but I just checked their, their admissions yield, and it's down 8 points in the same time period.

Yeah, um, yeah, so to have your price be low and your yield rate be low that suggests something, some problem with the value proposition or just the admission staff not doing a good job of selling it. Yeah, they're getting an offer, the offer is cheap and they're still not choosing Hobart-Smith. That's a problem. So yeah, I look very closely at the admission staff to be honest, and marketing and how they're sort of positioning You know, it could be related. All of this stuff is sort of related to when you run deficits for 5, 10, 8 years, you get low morale at the university. The staff aren't doing a great job selling the place because they actually are unhappy with their low compensation and how the place is run and that kind of stuff. So you can get a feedback loop here that's hard to get out of. So there's a lot to look at there for sure.

And that— if I'm a trustee, if I'm a trustee at Hobart Smith and I want to, I want to dig deep, Talk about the tool you have that would help trustees and the leadership. Yeah, deeper at Hobart Smith.

Yeah. So what we do is a strategic compass. It's a deep dive on benchmarking, and we look at every, every step in the enrollment funnel, starting with applications, then the admit rate, the yield rate, transfer-ins. Don't forget about them. I just had a school that I wrote a report today that lost about half of their transfer students. Not sure why at the moment. We're going to figure it out. But yeah, you look at each step, try to understand how you look compared to your historical values, but also relative to your peers, which is the really important missing piece that a lot of people don't have. And, you know, it's not normal. It's actually quite normal for your yield rate to go down right now. Everybody's yield rates are going down. They're getting more applications. It's a big problem though. If you're not setting records in terms of applications, you should be, right? Almost every school is setting records for applications right now and their yields going down. Totally normal. But if you didn't have that context of what everybody else is doing, you would think, wow, we had record apps and our yield is dropping, that that's a bad thing. That's actually quite normal for what's happening right now. So you need this additional context to understand. But basically what we do with the strategic compass is identify the areas that are abnormal. And then once you find the area that's abnormal, like say it's apps, then we check, you know, why are your apps low? And usually it's pretty obvious. We can find issues with the application requirements, fees, not being in the Common App, which is sometimes I find that And, you know, we fix that. Some of those are pretty easy fixes. Others, you know, actually another school just worked on recently, for whatever reason, their admit rate was way less than their peers, way less. And all they would— at least if their data is reported correctly, it appears that if they were to match the admit rate that their peers have, their enrollment would go back to what it was at its peak. Right? So you find things by doing this analysis that are not obvious until you do it. And then once you do the analysis, like, oh, of course we did this 6 years ago, everybody forgot about it, uh, and we never sort of fixed it, right? That kind of thing happens a lot. All right, so that's, uh, that could be helpful for them. And then of course the experimenting with different ad prices is another big part of that. All right, let's switch over to helping with the, the budget side on— of the budget on the expense side. And I'm gonna start with W-2 employee. That's actually salaries and wages and benefits spend, uh, relative to their revenue. It actually looks about right. Um, salaries about the same as their peer sets. Doesn't appear that they have an overspend on staffing at the moment. Um, I'm going to check W-2 employee counts over $100K. Let's do total W-2 employees. There we go. Or $1 million. Actually quite low, right? That looks fine, looks good. Doesn't look like staffing is their issue, um, which is huge to know this, right? You don't automatically go in to start cutting employees. So let's take a look at the other big one, which is contractors. Uh, per $1 million. That actually also looks normal, but it had issues in the past. Yeah, it can be, um, right, it can be misleading though if you have a bunch of really big contracts that are abnormal. So we'll check fees for services, total fees. Okay, this is probably the issue then. Yeah, here's the smoking gun. Um, if you're looking for a tip on where to look to fix your budget at Hobart Smith Williams Hubbard. Sorry, Hubbard. William Smith. Sorry about that. Um, this is it. You guys are among the highest in the country in terms of amounts spent on total fees for services per $1 million of operating revenue. You're spending $150,000 per $1 million. That's 15% of your budget just going to this fees for services, which is far higher than normal. It's double what is normal for your peer set and also for the national median. So let's try to figure out— I mean, I can go into a bunch of other line items, but this looks to be where they're going to find their issue. We're almost certainly going to see them in their contractor lists. So let's go to Hobart Williams, and bam, right away. Wow. Okay, this is one of the most expensive food service contracts I have ever seen. Okay, $15 million for 1,600 students for food service.

That's, that's, uh, you've got 3 columns there. There's usually 2 columns there.

Um, sorry, 3 columns of what?

Amount, amount, amount. Those last 3 columns on the right, they usually—

Oh, right. I have the total amount they spent, $15 million. And then let me zoom out a little bit.

Okay, and the amount per student. Okay, got it.

Yeah, the amount per student. All right, I'm just trying to digest this because this is pretty shocking. But all right, so they have this food service contract that's $15 million. That's $9,000 per student, and it's $147,000 per $1 million in operating revenue. Both of those are incredibly high, especially per student. So remember, uh, the norm for a food service contract is $1,700 per student. They're at $9,300. All right, and it's not a one-time thing. That's what I was looking at for a minute there. Because what can happen with these food service contracts sometimes there's like a major renovation of the dining hall or something, which could explain this, but it does not appear to be the case because you wouldn't spread that over 3 years unless they did a massive loan from this, vendor. I don't know, it could also— it's also facilities. So let's be fair here, this also includes maintenance and facilities. But I still think it's way too high. Alright, so I may be wrong, but it's really easy to check if I'm wrong. And if I'm wrong, fine. If I'm right, congratulations, you've just saved millions off of your budget. All you have to do is start calling different vendors, and asking them what it would cost to do the same thing, right? Very inexpensive task and get bids. My guess, and I'm very confident in this, that for the same services you could get, or even maybe you don't need the same services, that's another question, but even for the same services, you could probably get a bid that's well below $15 million if you're Hobart Williams Smith. This is a massive difference, and you already saw it showing up in the fees for services benchmark. What they could do is use this app, pull up their peers, and see what they're paying for dining and maintenance. Yeah, right, probably not close to $15 million, and per student not going to be in the realm of $9,000. That's incredible. $9,000 for maintenance and food. I've never— unless there's something else included, but it's been every year to Um, probably just really, really good food, man, from Sodexo, maybe. Uh, but that's a sort of mainstream vendor. I think they're just— they got stuck into a bad contract a long time ago and have not gotten a new bid. That's probably as simple as that. Get a new bid. Look at this, is going back to 20— man, 2018, 2017. Unbelievable. Get a new bid. It's time to put that up for bid. All right, and, and let me know if I'm right. All right, I'd love to hear how much money that is cut off of this contract if you find some other competitive— put it up for a competitive bidding process and see what you get. Um, if you work for Sodexo and would like to defend this contract, please come on the show and talk to me about how this is $15 million as well. Uh, maybe you have ideas. You know, these vendors will get very flexible once you start coming at them with competing bids, right? You may have experienced this in your personal life, right? Happens all the time. It's how markets work, right? Put this up for a competitive bid. Uh, everything else looks pretty decent. It's just this one massive contract. Yeah, yeah. My guess is that half of their budget deficit could be fixed right there, at least. All right, I'll leave it at that, Gary. Oh, there's a lot more to see in here, of course, but I'm not going to go through all of it right now. They can do that, um, or they can talk to me about doing a strategic compass.

Take it back, and I'll, I'll put the contact information for the strategic compass in the show notes so that you can reach out, and either Matt and/or I will make some time to show you what it could do for your organization. And, and Matt, if folks watching this show are just from William Hobart— Hobart William Smith, I'm working on it too— Hobart William Smith, you haven't heard this before, but regularly we find colleges, private colleges across the country, that just have a chronic inability to manage expenses in conjunction with their revenue week after week after week after week. Now, it could be management inability, maybe, but I think, man, I'd like to be interested in your comment on this. It is more of a market reflection maybe than even management lack of skills. What do you think?

Well, I don't know, not putting up a food service contract should go up for bid regularly. I know they signed long-term deals, but that doesn't mean you have to pay that for 10 years, right? You can renegotiate these things at any moment. There may even be a way to buy out of the contract that would save the school money. To me, it's just, you know, you gotta do your due diligence, make sure that you're putting up big contracts like that for competitive bids all the time. And, uh, even when they're not sort of able to on paper get out of the bid, get out of the contract, they should do it anyway just to know that this is an issue. Go back to Sodexo and say, hey, we've— we can't pay $15 million a year for this, right? What's a more reasonable plan that works for both of us? And, and go from there. Um, it's pretty simple. I think in this case, but, uh, I may be wrong, but, uh, I'd love to see some alternative bids for them.

Let's do, you know, I usually do then to wrap up the show, and this is the internal version of the College Viability App for 2026. And I've got Lourdes and Hobart William Smith up and let's take a look at a couple fields. And, and Lourdes, you know, not only do they have financial problems, they weren't graduating anybody. We see that regularly. But Hobart William Smith, see, it's easy when I can read it right there in front of me. Hobart William Smith. They were graduating students at a nice level. And again, you know, our threshold— you and I know our threshold at college viability is 50%. They're well in excess of that. I would take a look though at total applicants because you mentioned that a minute ago, um, in the context of Hobart William Smith. And theirs have gone up. IPEDS just has the last 3 data reported, up a little bit. But even look at Lourdes, even their applications were down over the last 3 years. That's, that's just a further indication We could probably pull IPEDS data from earlier. I'm not going to do that. And we mentioned admission yield during your part of the show. We can see admission yield going down everywhere. And again, we see that more, more likely here at Hobart William Smith and Hewitt-Lordes, probably because athletes are athletes and they're going to accept their admissions yield. And the percent admitted is the last one that I want to show. And interestingly, William Smith has stayed in a mid-60 kind of number for the last 8 reported years. I was actually expecting that to be lower because they seem to be in rather selective company there.

And yeah, there's a question, like, the school is running deficits, losing students. Yeah, why maintain the 64% admit rate? Yeah, right. Like, has anybody asked that question? Maybe time to change that, right?

Um, and you don't have to be like Lourdes, who is effectively admitting everybody. Especially in these early years.

But it's actually interesting because schools that are about to close, I would hope they would get close to 99%, right? You try to survive, keep your mission rolling, um, maybe with a little bit lower end, you know, students, but you still have your mission. Um, so that's another question. Why wouldn't we go to 99% there? 100%.

And I'm guessing it has to do something with the athletes because again, like I said at the top of the show, 72% athletes. And I talk with coaches and athletic directors regularly, and they recognize the fact that athletes are expensive students. And it appears that most colleges, especially those that say we're going to add sports, doesn't really matter what the sport is anymore, those students don't necessarily net materially significant new net revenue. And, and Lourdes University in Ohio is probably a poster child for what not to do. And yet, man, I bet you there are many, many colleges out there who have already started adding more sports, are thinking about that as a solution. And as the case in Lourdes shows us, that's not always successful. In the last couple weeks, the media has been— the Lourdes story in the media has been full of the athlete story. It wasn't just that the college closed. I did have something on my podcast yesterday that I'll share with you Apparently back in December when the Sisters of St. Francis wanted to close Lourdes, the previous board said no and they all resigned. The sisters appointed 7 new board members in December or January who approved the closure of the college. So as the late great Paul Harvey would say, that's the rest of the story at Lourdes University. But the big picture, of course, is athletes. And Matt, before I close here, For those watching this show, that was the first time I'd seen the AI report that Matt showed, and we'll make sure to get more out there for you on how to get access to that. And I'm sure Matt will share with us when we do shows in the coming weeks when it's available. For those who've already—

I'll probably give you access before we do it public, but yeah, we're making sure that there's no embarrassing errors that the AI is going to make me pay for. But, um, better— I think it's just keep in mind it's an AI report, it makes errors, but we're trying to make it as high quality as possible.

Well, you know, for what it's worth, Matt, reach over there, pat yourself on the back for a job well done on that. And we'll look forward to seeing that AI tool as it comes out soon. And so for Matt Hendricks, I'm Gary Stocker. Thanks again for making time to watch the College Financial Health Show. We'll be back next Tuesday with another show.