Obituary: John Sperling / Founder of University of Phoenix

Jan. 9, 1921 - Aug. 22, 2014

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John Sperling, who battled for accreditation and respect for the University of Phoenix, the upstart for-profit college that he founded in the 1970s to expand higher education to working adults, has died. He was 93.

He died Friday at a hospital in the San Francisco Bay area, according to a statement on Apollo Education Group Inc.’s website. No cause was given.

Through Apollo, the Phoenix-based publicly traded parent of University of Phoenix, Mr. Sperling became a billionaire. Forbes magazine estimated that his net worth peaked at $1.7 billion in 2005 before declining to $1.2 billion in 2012 and less than $1 billion in 2013, as his unorthodox, decentralized university faced renewed scrutiny of its finances and efficacy.

“Sperling’s intensity, tireless work ethic and self- professed ‘joy in conflict’ found fertile ground in the often controversial for-profit higher education industry that he founded,” according to a memoriam posted by the company, where his son, Peter Sperling, is chairman.

With more than 100 locations around the U.S. and an online- only study program, the University of Phoenix is among the biggest U.S. for-profit colleges, with a student population that peaked at 470,800 in 2010, according to its annual reports. Enrollment declined to 300,800 in early 2013. To reduce costs, the company in 2012 said it would close 115 University of Phoenix locations, including 25 campuses and 90 smaller centers.

Apollo Education Group, whose shares reached a closing high of $97.93 in Nasdaq Stock Market composite trading in June 2004, closed Aug. 22 at $27.74. Mr. Sperling was the biggest shareholder in the company with 8.2 percent of the shares as of Aug. 11, according to data compiled by Bloomberg from securities filings. The company’s name changed from Apollo Group Inc. last year.

Mr. Sperling’s revolutionary approach to education -- emphasizing group discussion of university-approved curriculum and credit for life experiences -- was belittled as “McEducation.” For-profit colleges continue to be scrutinized for their low graduation rates and the low repayment rate of loans by their students compared with traditional colleges.

Even so, some of Mr. Sperling innovations, including online classes and schedules that cater to working adults, have been widely accepted and adapted.

“Sperling was probably the first university president to develop a model that was predicated on customer first,” Richard Chait, a professor of higher education at Harvard University in Cambridge, Massachusetts, said in an interview for a 2010 article.

After rising from poverty to professorship, Sperling became convinced in the 1970s “that there was an untapped market in providing higher education for working adults,” he wrote in his 2000 memoir, “Rebel With a Cause.”

“To me,” he wrote, “the defenders of academic traditions were protecting undeserved middle-class entitlements, and, although I was part of the academy, I was not of it, had few emotional attachments to it and was indifferent to its disapproval.”

Mr. Sperling wanted teachers to be “facilitators” of classroom discussions and was known to growl, “Anyone caught lecturing will be shot,” according to a 1995 profile in the magazine of Reed College, his alma mater.

He served as Apollo Group’s chief executive officer until 2001 and chairman until 2004, then returned as executive chairman from 2006 to the end of 2012. A longtime donor to Democratic candidates, he personally lobbied in Washington against proposals by President Barack Obama’s administration to limit recruiting and access to federal financial aid.

His son, Peter, became chairman at the end of 2012. Together, father and son collected almost $840 million in stock sales from 2003 to 2010.

In his book, John Sperling described periods of depression, existential crises, psychosomatic maladies and adulterous affairs. He applied his idiosyncratic thinking and wealth to longshot initiatives such as cultivating crops in salt water.

Having survived both prostate cancer and the loss of function in one kidney, he took 30 pills a day on a regimen set by the now-defunct longevity clinic that he established, the Kronos Center.

Unwilling to lose his beloved dog, Missy, he funded pet-cloning research by Texas A&M University in College Station, Texas.

A critic of U.S. law enforcement’s war on drugs, he helped fund state ballot initiatives to approve medicinal use of marijuana and to steer nonviolent drug offenders to treatment instead of prison.

John Glen Sperling was born on Jan. 9, 1921, in the Ozark Mountains town of Willow Springs, Missouri, the last of five children of Leon and Lena Sperling. (A sixth child died in infancy.) In his memoir, John Sperling called his father a failed farmer and “a bum.” He was 15 when his father died and he said it “was the happiest day of my life.”


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