OSU receives $57 million donation!

[Nasty Nate]

OSU receives $57 million donation


By Staff Reports
6/26/2008 11:55 AM

STILLWATER -- Oklahoma State University announced Thursday a gift of $57.2 million from a Texas oilman and his wife.

The donation from Malone and Amy Mitchell was made through the donation of a million shares of SandRidge Energy stock and will be split between the Spears School of Business and the athletic department, according to a news release.

With $22 million designated for chairs within the business school, the academic gift will have an impact of $94.6 million after matched by the Oklahoma State Regents for Higher Education, as well as Boone Pickens' $100 million chair match commitment. This places the gift's total cumulative academic and athletic impact at $123.2 million.

"This incredible expression of generosity by Amy and Malone Mitchell will have an enormous impact on OSU academics and athletics," OSU President Burns Hargis said in a statement. "The entrepreneurship program we will create with this gift supports our vision of a new land-grant university that cultivates greater creativity and collaboration among students and faculty."

The gift to the business school is the largest donation to a university entrepreneurship program.

"Our vision for Oklahoma State University is to be the premier institution in the area for classroom
or extension instruction for students wishing to learn how to create, finance and manage their own business," the Mitchells said in a statement. "The athletic programs are an important part of alumni connection with our university and we want to further that bond."

The donation is the second largest academic gift ever to OSU, coming after Boone Pickens' record $100 million gift last month for OSU faculty chairs.

Malone Mitchell was born in Stillwater and graduated with a degree in agriculture from OSU in 1983. Amy Mitchell is a 1983 graduate of OSU's College of Human Environmental Sciences, where she obtained her degree in family relations and child development.

In 1984, the couple founded Riata Energy (now SandRidge Energy) with a $500 loan. Malone Mitchell previously served as company chairman, president and chief executive officer. During this time, Riata Energy became one of the largest privately held energy companies and the largest privately held land driller in the U.S., with significant midstream and tertiary oil production operations.

[OSUFan]

Wow! Didn't see that coming.

[FWPoke]

So, if the gift was stock, has OSU cashed it in already? If not, wouldn't the total amount be based on the stock price when they do sell it? Are they just reporting $57mil because that was the stock price on the day it was gifted?

[Chris H.]

Originally Posted by FWPoke

So, if the gift was stock, has OSU cashed it in already? If not, wouldn't the total amount be based on the stock price when they do sell it? Are they just reporting $57mil because that was the stock price on the day it was gifted?

The value of the gift would be based on the stock price at the time the shares were transfered over. OSU will likely sell it off over time.

[Chris H.]

Originally Posted by Nasty Nate

The donation is the second largest academic gift ever to OSU, coming after Boone Pickens' record $100 million gift last month for OSU faculty chairs.

I suppose that's official confirmation that the Spear donation was less then $25mil.

[Nasty Nate]

OSU touts $57M gift from oilman Mitchell

By Susan Simpson
The Oklahoman

STILLWATER — Oklahoma State University announced today a $57.2 million gift from Texas oil and ranching alums Malone Mitchell III and his wife Amy to create a new entrepreneurship program within the Spears School of Business and support OSU athletic programs.

Of the total, $22 million will be designated for endowed faculty positions in the Spears School of Business, which qualifies for a full match from the state.

The gift was made through the donation of one million shares of SandRidge Energy stock. Mitchell founded that company, formerly called Riata Energy.

The donation is the second-largest academic gift ever to OSU, coming after Boone Pickens’ record $100 million gift last month for OSU faculty chairs. Malone and Amy Mitchell are 1983 graduates of OSU.

Support to the OSU athletic department will allow the university to be more competitive on a national level by providing endowed support to future athletic facility projects and scholarship initiatives.

[CowboyOrangeFan]

Judging by the press release, the athletic department is keeping their half invested in SandRidge. Pretty interesting decision. That is if it was actually their decision to make. I'm pretty sure the foundation has already liquidated their half.

[txpoke]

Originally Posted by FWPoke

So, if the gift was stock, has OSU cashed it in already? If not, wouldn't the total amount be based on the stock price when they do sell it? Are they just reporting $57mil because that was the stock price on the day it was gifted?

How does the state match this type of gift? Value when it was gifted?

[Chris H.]

Originally Posted by txpoke

How does the state match this type of gift? Value when it was gifted?

Yes, when it was gifted. All proceeds (or losses) on the stock from here on out are OSUs, not the Mitchell's.

[CaliforniaCowboy]

With $22 million designated for chairs within the business school, the academic gift will have an impact of $94.6 million after matched by the Oklahoma State Regents for Higher Education, as well as Boone Pickens' $100 million chair match commitment. This places the gift's total cumulative academic and athletic impact at $123.2 million.


Is that statement worded correctly.... I think it should actually say, "total cumulative business school and athletic impact at 123.2 million?

The academic impact from Mr Pickens donations has already been counted, so this is just designating that impact to a specific school.

[Minarets]

So

Total: $57.2 million

Athletics: $35.2 million
Buisness endowed chairs: $22 million
Boone's "match": $22 million
State match for endowed chairs $44 million

Total impact: $123.2 millions of dollars!

Not bad

[CaliforniaCowboy]

Originally Posted by Minarets

So Total: $57.2 million Athletics: $35.2 million Buisness endowed chairs: $22 million Boone's "match": $22 million State match for endowed chairs $44 million Total impact: $123.2 millions of dollars! Not bad

Technically, I think it's:

State Match is 22 Million
Boone's match redirection to the Business School 44 million

total 123.2 million for Business School and Athletics.

[pistolsteve]

Pardon the off-the-cuff and probably uneducated quip, but....

Will OSU single-handedly send the state government into foreclosure by June 30?

(Please note that I do appreciate everyone's generosity and the state-match; just being a smart aleck.)

[Chris H.]

Originally Posted by CaliforniaCowboy

Technically, I think it's: State Match is 22 Million Boone's match redirection to the Business School 44 million total 123.2 million for Business School and Athletics.

No, Boone matches the Mitchell's 22. The total of Mitchell + Boone is matched by the state for an effective 88. But, you could say the state is already on the hook to match the Boone 22 as part of his 100. But only 22 of the original 100 is being redirected as a "match" not 44.

[CowboyOrangeFan]

Was just reading the press release on the foundation's website, which appears to be the exact same press release that is on the school and athletic websites. Although on the foundations website they have portions bolded toward the end. I can't really figure out why.

The link: http://www.osugiving.com/news_malone-mitchell.html

Bolded text:

“We appreciate the Mitchell’s incredible generosity,” said Mike Holder, vice president for OSU athletics. “Some of the best companies in the world are based in Oklahoma, and we believe in the leadership of Tom Ward the CEO and President of SandRidge Energy Company. Our plan is to hold the stock and combine it with our investment at BP Capital. This will accelerate the construction schedule for the Sherman Smith Training Center plus the development of the other facilities in the athletic village.”

I'm going to assume it is just some sort of weird typo (based mostly on them starting the bold right in the middle of a word), but it makes me wonder if they are trying to emphasize that it is just athletics and Holder that are holding on to the stock. Or maybe the opposite. Maybe they are holding onto it as well. Although I was told that they sold their shares already.