A deal to lease part of the land it owns in Raleigh could serve as a possible lifeline for Saint Augustine’s University.

Saint Augustine’s University officially announced Tuesday it would lease certain real estate to 50 Plus 1, a sports stadium and a development firm based out of Florida. The announcement came a day after WRAL Investigates learned of the deal, which is laid out in the school’s latest financial audit.

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“This agreement marks a pivotal moment for SAU as we embrace a bold vision for future growth,” said SAU Board of Trustees Chairman Brian Boulware in a news release. “We are excited to collaborate with 50 Plus 1 Sports, a proactive and dynamic partner, and it’s team of global investment partners, to deliver long-lasting benefits to our students, faculty, and the amazing Raleigh community.

“Together, we’re building a future that solidifies SAU’s role as a cornerstone of this city.”

The deal is expected to bring in $70 million to Saint Augustine's over the coming months. The school said it also includes "additional future revenues."

In the agreement, 50 Plus 1 Sports would pay Saint Augustine's $60 million by the end of 2024 and then another $10 million by June 2025.

“We are absolutely thrilled to come to Raleigh and partner with Saint Augustine’s University, local developers, and community leaders in this incredible city,” said 50 Plus 1 Sports President and CEO Monti Valrie. “This collaboration underscores our commitment to creating projects that resonate with the community, enhance local opportunities, and establish meaningful relationships within the business ecosystem.”

Through the Saint Augustine’s University Real Estate Foundation, audit documents say the school issued a Letter of Intent on Nov. 17, 2024.

The documents state the university will lease "certain real estate" to 50 Plus 1 Sports for 99 years. The Florida-based company touts itself as one of the "fastest growing professional sports stadium and mixed used development firms in the U.S."

The audit also states 50 Plus 1 will split revenue made from any projects, including 65% to itself and 35% to the university for the first 15 years of the lease. This deal comes at a time when the university is trying to dig its way out of debt. It most recently took out a $7 million loan with Gothic Ventures, with terms that have concerned alumni and community advocates.

50 Plus 1 would help the university pay off existing debts, including 50% of accrued and unpaid interest and the prepayment premium on its Gothic Ventures loan. It’s not clear what parts of the land the university would be leasing. WRAL Investigates emailed a Saint Augustine’s spokesperson, asking what land the school would lease to 50 Plus 1 and if the university is ending its credit agreement with Gothic Ventures.

WRAL Investigates also reached out to 50 Plus 1 Sports for an interview to ask about their plans for the land. WRAL News reported the university's plans to cut the number of Saint Augustine's employees in half in an effort to reduce expenses by approximately $17 million.

In an email sent to the campus community and local stakeholders on Saturday, Saint Augustine's confirmed "significant reductions" that included eliminating 67 staff positions and reducing expenses by approximately $17 million.

Some of the other audit findings in the audit include:

  • Lack of internal controls and effective policies/procedures over the university’s financial reporting
    • Lack of timely recording of some major transactions
      • Certain people have the ability to create and post manual journal entries to the general ledger
        • Certain significant contracts were not appropriately approved prior to execution and did not adhere to appropriate procurement policies
          • Inaccurate accounts payable

            Auditors noted these same issues in the 2022 and 2023 audits, as well as many of the same remedies:

            • University has established a more rigorous/proactive approach to journal entry review and performance.
              • Certain personnel within the Business Office no longer have capacity to write and post manually to the ledger.
                • University will begin to form a cross-functional team comprised of personnel from the Business Office, Internal Audit and accounting divisions that will keep track of invoice due dates and identify discrepancies/inaccuracies in records.
                  •  University actively undertake conflict of interest checks for everyone, including Board of Trustees and University leadership

                    The audit also shows the school's operating revenue fell 41% from 2023 to 2024. 

                    WRAL News has been covering the Saint Augustine's University's struggles since late 2023, when several staff members were fired, and in early 2024, when employee paychecks were missed as the university began fighting for its accreditation.

                    In July, the arbitration committee appointed by The Southern Association of Colleges and Schools Commission on Colleges reversed the decision from February to strip Saint Augustine’s of its membership. The university is still on probation.