Thursday, June 28, 2012

TTTT Smells of Desperation: Texas A&M University to Purchase Fourth Tier Texas Wesleyan University School of Law for $20 Million


Private ABA-Accredited Toilet Sold:

http://www.chron.com/news/article/Texas-A-M-buying-Texas-Wesleyan-law-school-3664030.php

“Texas A&M is buying the law school at private Texas Wesleyan University, a purchase that sets up a public law college in the Dallas-Fort Worth area and fulfills a long-sought goal for officials at one of the nation's largest universities.

The schools jointly announced the deal Tuesday after Texas Wesleyan officials approved the sale Monday night. Texas A&M will pay $20 million and sign a 40-year lease to use the law building at Wesleyan's campus in Fort Worth. Texas A&M regents are expected to approve the purchase on Friday. 

The school will be known as the Texas A&M School of Law at Texas Wesleyan University with a concentration in business and intellectual property law, starting in the 2013-2014 school year.” [Emphasis mine]

Overall Financial Picture for Texas Wesleyan University: 

http://www.guidestar.org/FinDocuments/2010/750/800/2010-750800691-06b96ba3-9.pdf

On TTTTexa$ We$leyan Univer$iTTTTy's 2009 Form 990, scroll down to lines 20-22 of page one. You will see that the supposed "non-profit" corporation had $100,242,230 in total assets countered by $33,408,213 in total liabilities. According to this document, on May 31, 2010, the university held $66,834,071 in end of year net assets.

Coverage of the TTTTransacTTTTion:

http://www.star-telegram.com/2012/06/26/4059659/texas-am-announces-plans-to-buy.html

On June 26, 2012, Fort Worth Star-Telegram reporter Diane Smith published the following:

“The end result will be an institution to be called the Texas A&M School of Law at Texas Wesleyan University.

"It's exactly what we have been looking for -- a world-class law school in Fort Worth," said Texas A&M University System Chancellor John Sharp. Texas Wesleyan Law School has 674 students.

Texas Wesleyan President Frederick G. Slabach said the aim is to work together to build a top tier law school in North Texas.”

These pigs cannot be serious in their assessment, i.e. they are merely trying to spin this as a good investment for state taxpayers. Unless, of course, they are genuinely delusional.  While the trash can will have better name recognition, don’t hold your breath in anticipation of the school climbing all the way to the first tier of U.S. law schools. To John Sharp: you purchased a FOURTH TIER LAW SCHOOL! In what universe is that considered a “world-class” law school?!?!

http://insidethelawschoolscam.blogspot.com/2012/06/gone-to-texas.html

On his June 27, 2012 entry entitled “Gone to Texas,” Paul Campos reported on the sale of this fourth tier trash pit to Texas A&M. Take a look at this excerpt:

“What that data show are the following facts for the 223 members of the class of 2011: 

(1) Five graduates got jobs with law firms of more than ten attorneys. 


(2) Nearly 10% of the class listed themselves as solo practitioners. 

(3) The school produced zero federal or state judicial clerks. 

(4) No graduate got a public interest job (including public defender positions). 

(5) Nearly 30% of the class was either unemployed or had an unknown employment status. 

Basically, almost nobody got a job, if a job is defined as "an acceptable employment outcome given the cost of attendance." 

In his concluding remarks, Campos aptly summed up the situation:

“It will be interesting to see if TAMU's administration decides to sink significant resources into trying to patch the Titanic's hull, or whether instead it expends minimal capital on its bargain basement acquisition and simply closes up shop in a few years if and when it discovers that its new cash cow should have been turned into all-beef patties. 


In any case I expect we'll see more of these sorts of deals in the near future, as desperate law schools look for various white knights -- even if most of the latter end up looking a lot more like T. Boone Pickens than Sir Lancelot.” [Emphasis mine]

Prior TTR Entry:

http://thirdtierreality.blogspot.com/2012/05/fourth-tier-rancid-toilet-water-texas.html

I profiled this “institution of higher learning” on May 21, 2012. That entry showed that this school: (a) will charge $30,580 in full-time tuition for the 2012-2013 academic year; (b) is firmly entrenched in the fourth tier of ABA-approved law schools; (c) provides garbage employment prospects for its students and graduates; and (d) that the average law student indebtedness for the Texas Wesleyan JD Class of 2011 was $96,391.

Furthermore, according to US “News” & World Report, 80 percent of this particular cohort took on such debt for a TTTT law degree from this commode. Who wouldn’t want to attend such an “elite” program, with such outcomes?!?!

Conclusion: You’re welcome, Texas Wesleyan University bitches - for the average "sophisticated consumer" doing more research into this economic decision. You have relied on the law school as a cash cow for far too long. The job prospects for Texas Wesleyan JDs are abysmal. While students will continue to get financially raped at this school, at least their diplomas will not have the name “Texas Wesleyan University” written across them. Also, the pigs at that private “non-profit” institution will no longer reap the financial rewards of this racket.

38 comments:

  1. It's simple. The school couldn't fill its seats and decided to sell this asset. Besides being a cash cow, the law school was probably the crowning jewel of the university too.

    You know the law schools are on the ropes when they are up for sale. During recessions, what do people do? They register for classes. Or go to grad school. Not now. The word is getting out.

    Thanks for highlighting these schools. You guys should be commended for your work.

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  2. Anon: I'm neither an historian or economist. But, from what I've read, this is the first time in history that enrollments have declined during a recession. What does that tell you?

    Nando: Great post. I'm not surprised that this is happening, given that--closer to my own backyard, if you will--New Jersey Governor Christie has announced plans to merge the Camden division of Rutgers (which includes a law school) with Rowan University. Rutgers-Camden's law school was on its way down in the ratings before the announcement; now that decline will accelerate. (Currently, it holds the very last spot in the second tier.)

    Lower-ranked law schools now what the deal is. So they will try to fob themselves off on other schools, who will soon discover that those law schools won't continue to be the cash cows they were. I'd love to know who'd be dumb enough to take on schools like Cooley, Jefferson, John Marshall of Illinois and New York Law Schools.

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    Replies
    1. Really? I realize they're a bad deal for the students, but the same thing isn't necessarily true for the owners...


      They're basically placing a bet that Congress won't rein in student loans any time soon.

      Delete
  3. One thing - keeping with Campos' post today - that prospective students should also do, is negotiate prices with every single law school they get into. Try to negotiate $0 tuition with loans only necessary for COL

    If you even bother going to law school to begin with, that is.

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  4. You know this is an industry in decay when a business with 750+ customers charging each a sticker price of $27k under quasi-monopoly conditions (i.e., an ABA accreditation) sells for only 20 million.

    According to LSN, only 10% of students received aid, and only 2% received full tuition.

    For ease sake, let's just assume the whole 10% get full rides. That means the school has a tuition revenue of (750-75)*27k = $18,225,000 every single year. In terms of expenses, they have their physical plant and a faculty that's likely overpaid, but not that large.

    An going concern with so few expenses, what I assume is little debt/obligations, and such high revenue selling for only $20M is bargain basement.

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    Replies
    1. A larger faculty and staff base than you might expect. Not so much a cash cow. The real estate holds the real value.

      Delete
  5. The school is a joke. I'd be surprised if Tex Wes didn't toss in a bunch of handjobs to entice TAMU to buy this shithole.

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  6. I wonder what the fate of the TWU faculty and management, staff etc. is.

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  7. They overpaid for this school. I wouldn't have paid more than $20.

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  8. This sale is tantamount to selling first class accommodations on the RMS Titanic an hour before she sat at the bottom of the ocean. This was certainly a firesale of a depreciating asset. This school has a terrible reputation and the smarter kids are getting the message that law school is a waste of three years and a lifetime of student loan payments. Unfortunately, there will always be dumb lemmings as evidenced by the daily Top Law School forums posts. Schools are getting very desperate. I heard Rutgers Law-Camden, soon to be Rowan, has less than 100 students committed for this Fall. Those enrollment numbers will doom the school. I can't wait to face law professors turned lawyers in court. I am counting the days before I get to beat the crap out of a pseudo-intellectual windbag who believes his/her sophistry will impress a Court.

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    Replies
    1. That day is going to bring tears of joy to these eyes. Those 'professors' won't last a day against trained and hardened litigators.

      It's like watching a new chess player go up against expert level players. No contest.

      Delete
  9. WHICH PARTY WILL LIKELY SOLVE THE STUDENT DEBT CRISIS?

    ReplyDelete
    Replies
    1. That you, JD PainterGuy?

      If so, please flee to Canada before worrying over the debt drives you insane. America owes you nothing. You would do better in Hong Kong or Ho Chi Minh City (Saigon), Vietnam.

      Delete
    2. Well this much is certain: it won't be the Democrats or the Republicans.

      Delete
  10. Shame on Texas A&M for buying this scampit!

    Whoever heard of a law school where NOBODY in the graduating class got a judicial clerkship? Where NOBODY got a public interest job? NOBODY out of 223 grads!

    To call attendance at this school a "gamble" would be to seriously insult the memory of the mobsters who used to run Vegas and the corporate thugs who run it now. It is not a gamble if the odds of a payoff are zero.

    ReplyDelete
  11. Off topic and to Strelnikov:

    After a long period of silence Re: my student loan GC services started calling me in the summer of 2009. I replied and they were actually very courteous and I have tape recorded telephone conversations from that time which I will post again.

    I think knowing how collections works from a real life example such as mine might clear up some of the mystery about the Student Lending business.

    And it is all true: Default and collections means a heavy penalty that is 18 to 25% of the principal balance. In my case it was forty thousand dollars added to my loan.

    And I never understood why the method for dealing with a SL debtor is to pile on more debt until the debt becomes impossible to pay off?

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  12. Not to defend the school, but I knew a lawyer from TWU that was razor sharp and successful. Granted, she graduated in the early 80s, but the lol skools would say that is beside the point.

    What's worse, for me, is that I am a Texas A&M alum. Them buying a 4th tier law school, in the current market conditions, is just fodder for even more Aggie jokes...

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  13. http://www.theeagle.com/article/20120628/BC0101/120629595/1103/bc20/&slId=2

    Matthew Watkins authored this piece which appeared in the June 28, 2012 edition of the Bryan-College Station Eagle. The article was entitled “Texas A&M may face obstacles in law school purchase.” Check out this telling excerpt:

    “Some signs point to Austin now being a friendlier place for [Texas A&M owning a law school]. There is an Aggie governor, Rick Perry, who has expressed public support for the idea. And the chairman of the Texas Higher Education Coordinating Board, Fred Heldenfels, is an Aggie donor.

    But the purchase comes at a time when state money is tight and jobs are hard for attorneys to find. And Texas Senate Finance Committee Chairman Steve Ogden, R-Bryan, predicted that A&M’s $25 million purchase price may raise eyebrows, especially considering the fact that A&M committed millions more to lure a federal biosecurity research center to Bryan-College Station last week.

    “A&M is sending out a conflicting message that they are going to have to work on in the Legislature because all we ever hear is how broke they are and how they are going to have to raise tuition to keep going, but yet every week there is a new announcement that they are going to spend tens of millions of dollars that in my opinion have very little to do with their core responsibility, which is to provide a world class education to 45,000 undergraduates,” he said. “While they are out there empire-building, they are going to have a hard time explaining to the Legislature that they need more money.”

    The story then notes that Texas state legislators do not need to approve the purchase. Watkins continued:

    “But Ogden noted that the Legislature will be needed to fund the school after it is approved. And he questioned whether that will happen since the state doesn’t seem to need new lawyers. A Wall Street Journal analysis published this week reported that 45 percent of 2011 law school graduates didn’t have a job within nine months of graduation.

    “I don’t think the Legislature wants more lawyers,” he said. “There is going to be some resistance in the Legislature for funding this.”

    Sharp seemed prepared for that argument Tuesday.

    “We are not interested in producing more lawyers,” he said. “We are interested in producing more world-class lawyers.”

    Do academic snakes ever tire of spewing forth empty, meaningless platitudes?!?! In the last analysis, while Texas A&M officials ostensibly are optimistic about this TTTT purchase, they are NOT looking out for the law students. The pigs should be aware of the PATHETIC EMPLOYMENT PROSPECTS for Texas Wesleyan JDs. If not, then they are willfully ignorant. (For $ome rea$on, Pile of Human Waste Melvin Schweitzer’s “sophisticated consumer” definition does not apply to gigantic research universities run by greedy businessmen.) Perhaps, the swine want to claim plausible deniability when future graduates are unable to find decent positions. Then again, the information is widely available.

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  14. You've shown the schools don't give a fuck about the students. And the schools can't respond with anything other than 'The students are whiny brats that expect the world to be handed to them on a silver platter.'

    When some of these toilets close down, I want to see the professors and deans go out and hang a shingle. See how they relate to broke criminals and single mothers. That ought to be fun.

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  15. Will the legislature withhold the funds for the law school? That would be sweeeeeeeeeeeeeet!

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  16. @11:03 AM

    How right you are.

    They and their ilk always fall back on tired, but accepted, cliches of how anyone with a law degree can hang a shingle if all else fails.

    Okay.

    Now let's see them go do it.

    And put food on the table and a roof over their heads and live the expensive decadent lifestyle they have become so accustomed to.

    FFC.

    FAT. FUCKING. CHANCE.

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  17. Law is for losers.

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  18. Texas has too many law schools (like most states). They have several in the Dallas-Forth Worth area. Several of the law schools in the state are public. State budgets all around the country are tight. So what the fuck is the rationale for not just letting this school die? Someone explain that to me.

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  19. http://www.star-telegram.com/2012/06/29/4069349/texas-am-system-regents-give-green.html

    Fort Worth Star-Telegram reporter Diane Smith followed up her initial coverage with a June 29, 2012 piece headlined “Texas A&M System regents give green light for purchase of Texas Wesleyan School of Law.” If you click on the Photos tab, you will notice that troglodyte John Sharp exchanged university dress ties with the homely “president” of Texas Wesleyan. From the opening:

    “Texas A&M University can officially begin the process to buy the Texas Wesleyan School of Law after a unanimous vote taken by the system board of regents Friday.

    Eight Texas A&M System regents voted 8-0 to authorize a non-binding letter of intent that continues the discussions between the university system and Texas Wesleyan for the planned purchase of the downtown Fort Worth law school.”

    Later on, the article continued:

    "We are very excited to begin this partnership," Texas Wesleyan President Frederick G. Slabach said Friday after the vote was announced.

    Slabach said a series of steps will follow, including Texas A&M and Texas Wesleyan applying for accreditation with the Southern Association of Colleges and Schools and with the American Bar Association. Texas A&M will also have get the approval of the Texas Higher Education Coordinating Board.

    "All of these things are working on a parallel track," Slabach said, adding that the aim is to complete the process by June 2013.”

    Does anyone notice how these academic shysters constantly employ platitudes and corporate gibberish, when making announcements?! One wonders if these idiots use such language in their regular everyday life, i.e. “Honey, I will be unable to meet for our prior dinner arrangement as I will be facilitating a meeting with business partners. We’ll be busy discussing an upcoming collaboration. See you later.”

    http://economix.blogs.nytimes.com/2011/06/27/the-lawyer-surplus-state-by-state/

    Perhaps, these bastards should have taken a look at this June 27, 2011 article from Catherine Rampell of the New York Times. It was entitled “The Lawyer Surplus, State by State.” Texas is the SEVENTH MOST GLUTTED lawyer job market, in the nation.

    According to Economic Modeling Specialists Inc., there will be an estimated 2,155 attorney openings, annually from 2010-2015. However, fully 3,052 people successfully passed the state bar exam in 2009! That represents 897 extra attorneys than are necessary. TEXAS SHOULD BE ACTIVELY CLOSING DOWN LAW SCHOOLS, NOT PUMP OUT MORE GRADUATES!

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  20. In case anyone still believes that “higher education” is more than a commodity, check out this June 26, 2012 article from A. Lee Graham of the Fort Worth Business Press. It is entitled “Texas A&M to purchase, rename Texas Wesleyan School of Law.” Read this telling excerpt:

    http://fwbusinesspress.com/main.asp?SectionID=18&SubSectionID=43&ArticleID=19350

    “Texas A&M University’s planned purchase of Texas Wesleyan University’s School of Law bodes well for the local economy, according to several sources.

    “It’s safe to say this will have a positive economic impact,” said Bill Thornton, president and CEO of the Fort Worth Chamber of Commerce.

    Though the chamber has conducted no economic or demographic studies on plans for the school to become an Aggie institution, Thornton emphasized the importance of the Texas A&M brand.

    “Anytime you add a brand like Texas A&M to your portfolio of educational institutions in the region, that is a significant plus.”

    The pigs simply see it as a potential boon to the Fort Worth area. However, Texas has more than enough lawyers. In fact, as you can see from the comment above, the state has a HUGE GLUT of attorneys. At any rate, the thieves are happy to spin this as a great acquisition/merger. Hell, just read the conclusion of this article:

    “Among his life’s goals was to produce a [law school] under the A&M banner,” Sharp said.

    Slabach said that he understands such enthusiasm.

    “They see that as having some synergy with what they’re doing,” said Slabach, pointing to Texas A&M’s engineering and agricultural curriculum as touching on intellectual property issues.

    “We already have a track within the law school for students to get certified in intellectual property law,” Slabach said.

    About 675 students currently attend the law school. Whether enrollment could increase as a result of the proposed partnership has not been determined.

    “This would put Fort Worth in a great light,” Slabach said of the partnership. “This strategic partnership is, I believe, a win-win-win for Texas Wesleyan University, the city of Fort Worth and for Texas A&M.”

    Too bad, John Sharp did not list having integrity as one his goals in life. Then again, in this country, it usually pays to not have any principles. Laslty, Cockroach Frederick Slabach can shove that supposed “synergy” up his portly Texas ass.

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  21. Nando, you got it right, especially with the statistics:

    --------------------------------------------

    http://thirdtierreality.blogspot.com/2012/06/first-tier-bag-of-ass-pepperdine.html

    In 2009, 9,787 people passed the bar exam in the Empire State. The analysts estimated, though, that New York would need only 2,100 new lawyers each year through 2015. That means that if New York keeps minting new lawyers apace, it will continue having an annual surplus of 7,687 lawyers.

    --------------------------------------------

    Taken together, its easy (for anyone who is a disinterested party and rational..) that higher education, law school in particular, is simply a scam designed to enrich law school professors and administrators at the lifelong expense of their students.

    Riding their coattails are the cottage industries of Bar review, textbooks, study outlines, lexis/west, and then, of course, the various states with never-ending Bar dues, CLE's, etc. Bar associations, etc. Fees this. Fees that.

    All designed to suck you dry. To bleed you more.

    Grist for the mill.

    And that's how America runs.

    You are either benefiting from and part of the corruption - or you are getting viciously fucked by it.

    ReplyDelete
  22. http://www.esquire.com/features/young-people-in-the-recession-0412

    ------------------------------------

    Found on Fuster Clucked.

    Saved this one to my HD before it gets gone.

    The Boomers are not only scamming the fuck out of these "sophisticated consumers", they're eating their lunches and loving it.

    If the Lemmings want to go to college / law school - fine. It's a "Pay to Play" system. But given the choice of debt and then no job and living at home afterwards, I'd skip the edumacation altogether and just live at home for as long as possible.

    There's nothing out there for them and the majority are far to stupid and gullible to realize it.

    ReplyDelete
  23. You should ask him what his name was and why he doesn't drive a truck.

    ReplyDelete
  24. 1:57's right. You're either benefiting from the scam or getting fucked by it. That's America.

    ReplyDelete
  25. Time to profile Victoria Pynchon......

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  26. Hey, have you done an article on Penn State or Drexel yet? My cousin's considering both schools. I'm trying to get him to see how it's a bad choice. Also, he has hardly any debt and he's got chances to move up in his company. A lot of the managers are approaching retirement. His coworkers like him. And he has the best production.

    ReplyDelete
  27. http://www.youtube.com/watch?v=uskyjAOju58&feature=player_embedded

    8:05 ms in:

    Credentials are nothing more than a license to lie.

    ReplyDelete
  28. This school should've closed down. Oh yeah. That's right. The professors and administrators don't give a shit about the students. Or the taxpayers.

    ReplyDelete
  29. The higher education scam is part of greater scheme to break this country down into a post-industrial dystopia. For the most part, kids who go to law school are smart or above average intelligence (top 100 law schools based on LSAT medians-GPAs today only measure a student's ability to breathe through clay pottery classes or Intro to Political Theory bullshit courses). The post-industrial system is designed to suppress smart people by keeping them occupied with a burdensome and unsatisfactory job just to live above water and pay the vig on student loans. It is designed to keep you from thinking critically or opening your own business. It is designed to KEEP YOU DOWN. This coupled with Fast & Furious's attack on the Second Amendment is meant to be part of a greater agenda to facilitate the collapse of society while ushering the rule of the bankers and technocrats. Going to grad school or law school while being saddled with this obscene amount of debt is designed to enslave you, physically and mentally. Think of a JD as the carrot on the stick. As a jackass, you will chase that carrot and never get to nibble on it. It's game over for you. The author of this blog is trying to wake you. Most of the audience will think he is angry or bitter but I admire his dedication (he has been doing this for 2 years now pumping 6 or 7 posts a month). That is fucking dedication.

    ReplyDelete
  30. -6:22 PM.

    Exactly right.

    Paying the vig is the most fitting expression as well. Why not make money off unsuspecting students and keep them essentially working for the government virtually 12 / 12 months of the year??

    Even with IBR, you will make just enough to maintain an apt. and buy food.

    That's a subsistence existence. Not living.

    No future.

    You have it right. Exactly 6:22 PM.

    ReplyDelete
  31. 146 LSAT score and ugpa 3.5

    Would Wesleyan accept this applicant?

    My sister is wanting to go here but I'm hoping she doesn't due to her LSAT score not meeting txwes median. I'm trying to encourage her to do bigger and better things. What do you think her chances are getting into txwes?

    Do they accept just anybody?

    ReplyDelete

 
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