John Sperling, University of Phoenix Founder, Dies at 93

Photographer: Laura Segall/Bloomberg

John Sperling, founder and executive chairman of Apollo Education Group Inc., stands at his home in Phoenix, Arizona, in this June 16, 2009 file photo. Sperling has died at the age of 93. Close

John Sperling, founder and executive chairman of Apollo Education Group Inc., stands at... Read More

Close
Open
Photographer: Laura Segall/Bloomberg

John Sperling, founder and executive chairman of Apollo Education Group Inc., stands at his home in Phoenix, Arizona, in this June 16, 2009 file photo. Sperling has died at the age of 93.

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 on Aug. 22 at a hospital in the San Francisco Bay area, according to a statement on Apollo Education Group Inc. (APOL)’s website. No cause was given.

Through Apollo, the Phoenix-based publicly traded parent of University of Phoenix, 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.

Revolutionary Approach

Apollo Education Group, whose shares reached a closing high of $97.93 in New York trading in June 2004, rose 0.3 percent to $27.82 at 10:22 a.m. 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.

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 Sperling innovations, including online classes and schedules that cater to working adults, have been widely accepted and adapted.

“John Sperling’s passion for education changed America,” U.S. House Minority Leader Nancy Pelosi, a Democrat, said in a statement. “By improving access to higher education for thousands of non-traditional students, he created a movement and empowered a generation of working adults with the tools needed to provide a better quality of life for their families.”

No Lecturing

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 memoir, “Rebel With a Cause” (2000).

“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.”

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.

Cloning Pets

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.

Merchant Marine

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, Sperling called his father a failed farmer and “a bum” and said his father’s death, when Sperling was 15, “was the happiest day of my life.”

He began high school in Kansas City and finished in Portland, Oregon, joined the merchant marine and spent two years working on a freighter. Soon after resuming his education in 1941 at San Francisco City College, he entered military training with the U.S. Army Air Corps. He had learned to fly combat fighters when World War II ended and wasn’t called to duty.

In completing his undergraduate education at Reed College in Portland in 1948, he began to think of himself as being “in an unfair competition with the privileged sons and daughters of the middle class -- often the upper-middle class.”

Faculty Strike

He received a master’s degree in English history from the University of California at Berkeley and, on a three-year fellowship, his doctorate in economic history from University of Cambridge in England.

While teaching humanities at San Jose State University in San Jose, California, Sperling led a faculty strike in 1968. Its failure cost him the presidency of a union representing employees at California’s public universities.

In 1972 Sperling embarked on a federally funded project to bring educational opportunities to police officers and teachers working with troubled youth. With two colleagues he created the Institute for Professional Development, operated in conjunction with the Jesuit-run University of San Francisco. Sperling said he launched the effort with $26,000 left over from a land investment gone bad, and by converting his house into a rent-free office.

Following a fight for accreditation from the Western Association of Schools & Colleges, Sperling in 1976 took his idea for a full-fledged for-profit university to Arizona, part of a different accrediting region.

Online Campus

More battles followed, as Arizona’s public universities objected to the University of Phoenix’s application for accreditation. Sperling prevailed and devoted a chapter in his book to what he called “The War in Arizona.” Once accredited, Sperling began expanding -- to California again, then New Mexico, Utah, Colorado, Nevada and Hawaii.

Sperling started an online campus in 1989 and stuck with it through unprofitable years. The Apollo Group went public in 1994 on Nasdaq.

Sperling’s two marriages ended in divorce. He had his son with his second wife, the former Virginia Vandegrift, who said in 2010 that raising a family had held little appeal for her ex-husband.

“He was so driven,” she said in an interview for the 2010 article on Sperling and his company. “He always felt that a family would be a distraction. His theory is, you can’t be a genius and have a family.”

Sperling had an on-and-off relationship for more than 45 years with Joan Hawthorne, a memoirist who uses the pen name Candida Lawrence.

(An earlier version of this story corrected the name of the school in the 23rd paragraph to University of San Francisco.)

To contact the reporters on this story: Laurence Arnold in Washington at larnold4@bloomberg.net; Mary Childs in New York at mchilds5@bloomberg.net

To contact the editors responsible for this story: Charles W. Stevens at cstevens@bloomberg.net Kevin Miller, Bruce Rule

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.