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Penn State’s scandal tab surpasses $27 million

Money AP

The Jerry Sandusky child-sex abuse scandal has cost Penn State on numerous fronts, from its once-sterling reputation to stifling NCAA sanctions to myriad points in between. One of those cost points, suffice to say, is financially.

In an update to the costs related to the scandal as of November of last year, the university revealed late this past week that it has thus far spent $27,663,423 (pictured) dealing with the fallout of Sandusky’s crimes. A sizable portion of those costs are related to legal fees as well as the use of consulting firms.

According to the Patriot News, the breakdown of those costs is as follows:

– $13 million for internal investigations and communications, including the Freeh Report;

– About $7.5 million in the university’s legal defense;

– $3.95 million for the legal defense of other individuals, including former Penn State President Graham Spanier and others;

– Roughly $1.3 million for externally initiated investigations;

– $1.8 million for other expenses.

It should be noted that the $60 million fine imposed by the NCAA on the university, the dispersal of which remains the subject of much tugging and pulling, is not included in the latest breakdown. A federal antitrust lawsuit filed by Pennsylvania governor Tom Corbett last month is seeking the complete reversal of all NCAA sanctions, including the historic fine. The state’s legislature is also pushing for a similar outcome.

That $27 million-plus figure, though, will continue to climb. Numerous lawsuits filed by Sandusky’s victims continue to wind their way through the legal system, although the university is hopeful they can settle most if not all of those out of court. Still, the payouts to the victims, whether through a settlement or otherwise, will continue add to the financial toll Sandusky’s crimes have taken on the university.

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31 Responses to “Penn State’s scandal tab surpasses $27 million”
  1. mrlaloosh says: Feb 16, 2013 9:17 PM

    I hope it costs these clowns everything they have. They should all be going to prison for there actions.

  2. amosalanzostagg says: Feb 16, 2013 9:56 PM

    The longer this goes on, the worse it gets for Penn State.

  3. amosalanzostagg says: Feb 16, 2013 10:02 PM

    …….and they haven’t even started to settle the awards for the kids molested by Sandusky.

  4. cometkazie says: Feb 16, 2013 10:04 PM

    Get out the popcorn, here we go again.

    Same people, same comments. Watch.

  5. gatorprof says: Feb 16, 2013 10:07 PM

    It is hard to have sympathy for an institution that put their football program above protect young boys from a sexual predator.

    The whole thing about trying to restore Joe’s reputation is sickening. It isn’t about trying to help the victims, rather it is about how to prop up a dead man’s reputation. Twisted….

  6. psudu says: Feb 16, 2013 10:32 PM

    And lets not forget what the students at this institution are doing this weekend..raising money for kids with cancer…check out http://www.thon.org... last year alone over $10.5 million was raised. But you drones would just rather comment how bad it is… nothing about how they have been doing this since the 1970’s…move on.

  7. tonyp13 says: Feb 16, 2013 10:52 PM

    Really? You’re going to give a thumbs down to a post about college kids raising millions for kids with cancer and cancer research? Classy.

  8. tonyp13 says: Feb 16, 2013 11:10 PM

    And actually, they have Penn State students have raised at least $2 million each year since 1998…

  9. BigBeachBall says: Feb 16, 2013 11:25 PM

    Why is the stock image for this blog a picture of a pile of cash seized in a narcotic bust? Hilariousness.

  10. frug says: Feb 17, 2013 12:31 AM

    So $27 million so far with $60 million in NCAA fines and $12 million in Big 10 withholdings to come. That’s $99 million we know of. After the lawsuits and investigations are done I’m guessing this scandal will cost the university at least $150 million in direct costs. Throw in lost ticket, concessions and merchandising revenue and you are probably looking at $175+ million quantifiable damages to say nothing of the uncalcuable PR hit the school has taken.

  11. csilojohnson says: Feb 17, 2013 1:03 AM

    The article is not about cancer. Why would anyone posting about this article comment about what the Penn State students are doing?

  12. tommy57 says: Feb 17, 2013 1:18 AM

    Cometkazie is right – any PSU story seems to elicit the standard pro/con responses. Tony is also right – to give a thumbs down to efforts to raise funds for pediatric cancer reveals, to me, a personal agenda unrelated to facts.

    PSU enrollment applications have not diminished in numbers (my daughter starts in September). The criminal justice system will tend to thsoe charged with crimes and PSU will compensate the victims and provide whatever assistance they can. The university will be fine, much to the dismay of some, I guess.

  13. thraiderskin says: Feb 17, 2013 2:19 AM

    Sure a lot of trolls on here… shouldn’t be surprised.

  14. sasquash20 says: Feb 17, 2013 7:59 AM

    I think they got off easy. Should have been given the death penalty. And if not then the fine should have been way more then 60 million.

    Don’t knock the kids that go to PSU for the horrible actions of the schools administration heads

  15. psudu says: Feb 17, 2013 8:09 AM

    @csilo…I posted about THON because every Penn State hater wants to tear down the whole institution. It wasn’t everyone there who did these awful things. I posted it in hopes that maybe some people will donate…or at least see that the students are doing something amazing.

  16. mancave001 says: Feb 17, 2013 10:10 AM

    gatorprof:

    It is hard to have sympathy for an institution that put their football program above protect young boys from a sexual predator.
    ==============

    The “institution” didn’t do that. It’s not even clear that was the goal of Spanier, Curly, et al. There is ZERO evidence Paterno did that.

    An really, I’m so sick of the hypocritical chest thumping morons who complain that PSU had a “football first culture” and/or that the fan base, students, alumni and overall community are somehow to blame. You should hear yourselves.

  17. effjohntaylornorelation says: Feb 17, 2013 10:15 AM

    And all because of football and grown men’s fears of ruining their legacies.

  18. cometkazie says: Feb 17, 2013 10:32 AM

    Thanks Tommy57.

    In the grand scheme of things, football isn’t that important. It’s a sport, a diversion, entertainment. Many don’t realize that and take it entirely too seriously.

  19. amosalanzostagg says: Feb 17, 2013 10:46 AM

    Psudu,

    I have contributed annually to this cancer funding raising event in the name of my maternal grandfather
    who attended PSU and died of cancer. Still do. It is and admirable endeavor that the PSU community takes great pride in.

    The PSU community also supports their athletic teams, particularly the non revenue sports. Football and men’s basketball (through the NCAA) are the vehicles that help fund the non revenue sports.

    Now you have three individuals who were quite willing to shield and protect the PSU brand in order to keep the revenues flowing and the image
    of a pristine program. Forget JoePa, he is dead and anything he did know went to the grave with him.

    Spainer, Curly and Schultz are a different matter.The upcoming felony trials are going to rip the scab off a healing wound and Penn State is going to continue to pay an enormous price.

    You say move on. I agree. Yet when you have the Paterno family trying in vain to rehabilitate JoePa’s reputation and legacy, Governor Corbett playing politics by filing a Federal lawsuit to keep any legal action under his control rather than the Democrat AG, and various state politicians grandstanding for political gain, PSU cannot move on.

    It becomes “Groundhog Day” and the 24 hour sports news channels have new fodder to go over old ground and keeps the soap opera “The Days of Our Lives as the World Turns in Happy Valley” going on and on and on.

  20. pricecube says: Feb 17, 2013 12:25 PM

    27M … wow! That is even more than Mike Hamilton cost Tennessee!

  21. ironman721 says: Feb 17, 2013 12:53 PM

    I am so tired of the Mob mentality of people condemning anyone associated with the university. 1 former coach committed awful crimes against children and will die in prison for it. 3 and maybe 4 others did nothing to stop it and face prison time for there actions and the 4th is dead. That leaves the 99.9% of PSU alumni, students, faculty, and employees across all the campuses in Pennsylvania and in jobs working across the globe to pay for the crimes that these 4-5 people committed. 4-5 people that have faced or are facing actual justice in court. Continue to persecute the 99.9% of innocent people associated with Penn State because it makes you feel better about yourself and your life. Continue to look down on them because it makes you feel good. That’s what “good people” do, right? Your “Nazi elitism mentality” makes you better then no one. But it is a free country and if continuing to bash other innocent people makes you feel better or in some way makes you feel like you are doing anything to help the children that 4-5 people didn’t help, then by all means keep up your persecution.

  22. dkhhuey says: Feb 17, 2013 1:16 PM

    What I find humorous is based on the fact that for years upon years, PSU fans would be on sites running their mouths about how virtuous and pure their university was when a scandal broke out on any other major college campus. They were by far the most obnoxious posters when OSU was going through Tat/Tressel Gate. Well, it seems the worm has turned and now you’re butt hurt because people are bashing and stereotyping your university and fanbase on a daily basis. It has been entertaining to say the least!

    Yes, I know, just like every convict in prison is innocent, none of your PSU fans on this site were guilty of bashing other schools!

  23. ironman721 says: Feb 17, 2013 1:38 PM

    @ Dkhhuey, It’s good to know Sandusky’s sex crimes against children and all the suffering the fall out has caused to everyone is “humorous” to you. At least someone is happy about this tragedy. You should proud of yourself.

  24. dkhhuey says: Feb 17, 2013 1:59 PM

    No ironman, that is not what I said but thanks for projecting! What I said was I find it humorous that all the PSU fans are now so butt hurt and whinning about everybody bashing their university when they were, by far, the ones that were the most obnoxious when bashing other universities. It is called reading comprehension – I suggest you take a few classes on it!

  25. ironman721 says: Feb 17, 2013 2:05 PM

    No, now you are back stepping. Other people’s pain and misery brings you happiness, like I said, you should be proud.

  26. dkhhuey says: Feb 17, 2013 2:08 PM

    No idiot – I am not back stepping! I am actually telling you what I actually typed and yes, I am very proud of myself! Again, reading comprehension is something you are obviously lacking!

  27. ironman721 says: Feb 17, 2013 2:13 PM

    Well 1 thing I do comprehend, being called out on your “idiot” comments is not so “humorous” to you.

  28. cometkazie says: Feb 17, 2013 2:14 PM

    dkhh: Your point is well made.

  29. billsboy88 says: Feb 17, 2013 4:01 PM

    That’s a lot of tuitions…

  30. iownyou2 says: Feb 17, 2013 8:11 PM

    13$ million for the Freeh report???? Holy hell thats a lot of money for one of the worst reports ever written. Lacking any evidence and not even interviewing ANY of the main people mentioned in the report.

  31. matt09jones says: Feb 20, 2013 9:29 AM

    Reblogged this on Men of the Round.

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