Expert: Baylor could lose hundreds of millions of dollars - KXXV Central Texas News Now

Expert: Baylor could lose hundreds of millions of dollars

(Source: KXXV) (Source: KXXV)

A financial consultant said Baylor University could lose hundreds of millions of dollars because of the way the school handled it's sexual assault scandal.

Bears for Leadership Reform hired the financial consulting firm HSSK to take a look at how much Baylor's sexual assault scandal could possibly cost the school. Jared Jordan with the firm said the group worked on the analysis for three weeks.

"HSSK was asked to estimate and quantify the costs that have been or may be incurred by Baylor, as well as to quantify any revenues that have been lost or may be lost by Baylor related to the sexual assault crisis," Jordan said. "The methodologies I applied in my analysis are commonly relied upon by other experts in my field, to estimate and quantify the past and future economic impact of specific events," he added.

The financial consultant said Baylor could lose nearly a quarter of a billion dollars because of the scandal.

"To date, it is my estimation that the financial impact of the sexual assault crisis at Baylor could be as much as, or than $233 million," Jordan said. "That's consisting of $121.7 million in cost and $101.3 million in lost revenues through 2019."

Jordan said there are several things that factor into his estimate of Baylor's $223 million loss.

"Pepper Hamilton's investigation cost estimated to be approximately $5 million... victim settlements estimated at $17 million... legal consulting and public relation costs estimated at $32.9 million," he said. "Hiring of interim and new employees estimated to be approximately $700 thousand, Title IX improvement related costs are currently estimated to be $11.5 million... as well as potential fines and penalties estimated to be approximately $30 million," he added.

John Eddie Williams with BLR said the group wanted to look into the cost associated with the scandal in the hopes of convincing the Baylor Board of Regents to release more information about their findings surrounding the school's scandal.

"We need for the board to understand and see the impact," Williams said. "We want accountability from the board as to why they failed to implement Title IX and allow these things to occur."

He said he hopes releasing their report will encourage the BOR to speak to the public about everything surrounding the school's sexual assault scandal.

"Hopefully, the board, next time, will be doing the interview and be able to tell the people and tell us the size of the impact," Williams said. "We will do, use every tool available to get the Baylor nation, the family, united and have the voice so loud that the board will eventually have to listen," he added.

A spokesperson from Baylor said in a statement that, "Baylor University is and will continue to be strong and financially healthy, we will not respond to such speculation with any further comment."

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