Most of the sanctions levied against Penn State by NCAA president Mark Emmert are direct and self-explanatory. How the $60 million fine would be disbursed, however, was a bit more complex.
Enter a new NCAA ‘task force’ to take care of that detail. In a Tuesday release, the NCAA said it was setting up a group of 10 to “develop the philosophy and guidelines for the $60 million endowment… that will benefit external programs for the prevention of child sexual abuse and victim treatment.”
“Since July, Penn State has received input from a variety of sources with respect to the structure and operation of the endowment, which we have passed along to the NCAA,” said Penn State President Rodney Erickson in a statement. “The NCAA has determined that at least one-quarter of the annual disbursements from the endowment will be reserved for Pennsylvania organizations. However, recognizing that child sexual abuse is a national issue, the NCAA has determined that grants from the endowment will be available in other states as well. Penn State appreciates the commitments of the task force on this important endeavor that will help countless victims of child sexual abuse.”
Here is a copy of the consent decree signed by Penn State. The school must pay the $60 million fine in $12 million lumps over five years. No PSU-run programs are eligible for the money, but the school will be able to have a vote in where a portion of the endowment goes because two members of PSU’s faculty are on the task force.
Penn State is also facing a loss in bowl revenue from the Big Ten conference ($13 million), scholarship loss and a postseason ban in the aftermath of unprecedented steps taken by the NCAA following the Freeh report.