Board Thread:Episode Discussion/@comment-24993958-20170114144645/@comment-10390252-20170114220149

FWIW, my guess is that Ozpin (or, possibly, that time's reincarnation of the Wizard of the Legend of the Four Maidens) was the court wizard of the last King of Vale. He was also his Lord Chancellor - the guy who actually translated the king's policies into concrete action - hence his claimed role in establishing the schools.