BUFFALO, N.Y. — Ever since the sudden announcement that Trocaire College was backing out of its deal to buy Medaille University people have wondered, what scuttled the deal?
The details of what happened have been shrouded in secrecy by a non-disclosure agreement between officials at the two schools. However, an email sent last month from Trocaire's president to his Medaille counterpart sheds light on what caused Trocaire to pull out, resulting in Medaille's decision to close entirely.
"The Trocaire deal seemed to be our way out, and we were all looking forward to that," said Kevin Trudell, Medaille's former Director of Residence Life and Student Involvement, whose last day on the job was Thursday.
When the deal fell through it left not only students scrambling to find other schools to continue their education, but 400 workers suddenly looking for employment.
What killed the deal?
A confidential email, dated May 9 and obtained by 2 On Your Side from the president of Trocaire to the interim president of Medaille, informing that Trocaire was pulling out, reveals that Trocaire had serious concerns that Medaille wasn't legally entitled to more than $5 million it had applied for in Covid relief related tax credits, which would become Trocaire's problem if the sale was carried through.
"We're not a victim of circumstance, we're a victim of mismanagement," said Trudell, who also served as chair of the staff council, which, along with the faculty council and the student government, had expressed votes of no confidence against Medaille's board of trustees.
Questionable expenses
"The Elk Street complex is the most glaring example of constant mismanagement," said Trudell, referring to the athletic complex in the Seneca Babcock neighborhood, for which Medaille entered into a long-term, multimillion dollar lease.
Trudell says this contributed to the university's debt, which The Buffalo News has reported as having grown to $22 million.
Speaking to the AG
Medaille and Trocaire officials insist they are still bound by a confidentiality agreement regarding the purchase deal, even though there is no longer such a deal in place.
Both schools issued statements, citing the non-disclosure clause as the reason they are "not able to discuss" why the deal fell apart and why "we will make no further comments."
However, they may have to talk about it if matters surrounding Medaille's finances become the subject of legal scrutiny, and two sources tell WGRZ-TV that they have already spoken to representatives of the Office of the New York State Attorney General.
"I'm really hoping the Attorney General gets involved and looks at our (Medaille's) finances," said Trudell, who has landed a job with Alfred University.
"The place has been mismanaged for many years and that's a problem and that needs to be investigated ... and I really do hope the Attorney General investigates that."