Penn State Sandusky scandal

Parent Cafe
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<p>I initially thought $60 million was a big financial hit for a university, especially a public university, to absorb. Now I’m not so sure. The NCAA is allowing them to spread it out over 5 years at $12 million a year (interest-free, as I understand it). So a $12 million/year hit to a $4.3 billion annual operating budget doesn’t sound so big. (The medical center represents about 1/3 of the total budget; I assume that’s totally separate, so I guess we’re talking about a $12 million hit to a roughly $2.9 billion non-medical budget). </p>

<p>They also have some kind of liability insurance that will probably cover some or most of the $12 million/year. I don’t know what’s in the insurance contract, but according to their latest budget they spend $15.7 million a year for “property and liability insurances.” Seems like $15.7 million/year should buy you fairly extensive coverage.</p>

<p>Then, too, there’s some cost savings from the reductions in football scholarships, maybe close to $1 million/year once all the reductions kick in. </p>

<p>Apart from that, they don’t seem to be in terrible shape financially. Their state appropriation was held constant at $279 million, despite earlier efforts by the Governor to slash that figure by roughly half. Tuition and fee increases are expected to bring in an additional $33 million/year, bringing total revenue from those sources to about $1.45 billion. </p>

<p>Their total athletic department budget of $97 million shows football revenue of $50 million and football expenditures of $10 million, but I’m pretty sure that’s understated on both the revenue and expenditure side. On the football revenue side, I don’t think they’re including things like their annual Big Ten conference payout (roughly $24 million to each member school, mostly from football TV contracts, football bowl revenue, and NCAA basketball tournament revenue, all of which Penn State should continue to receive except its share of bowl revenue) and licensing revenue from Penn State logo paraphernalia, most of it ultimately football-related. And on the football expenditure side, I don’t think they’re including football scholarships or a variety of academic support services for athletes and administrative support for the football program, which are buried in more general, non-transparent line items. My guess is when all is said and done, football directly or indirectly accounts for 90+% of their athletic department revenues, and probably half or more of their athletic department expenditures.</p>

<p>Put in that context, a $60 million fine, spread out over 5 years into manageable $12 million annual payments, some portion of which is probably covered by insurance and some portion of which will be be offset by mandated reductions in expenditures, seems more like a slap on the wrist than something that’s going to punch a gaping hole in their ability to deliver academic services.</p>

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<p>"Mini…What PSU did was horrid, but it’s still a real possibility that some eother school ha even larger skeletons in its closet. Srely you’re not suggesting that PSU’s offense are the worst possible.</p>

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<p>I’m trying to wrap my head around what you feel an athletic program/school administration could do that would be worse than aiding/abetting/looking the other way at decades of child rape."</p>

<p>As reprehensible as those offenses, it’s possible that another school could have equal or worse offenses. Causing the death of someone and then covering it up would be seen as equivalent or worse. Or maybe a higher number of rapes victims by multiple perps.</p>

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<p>Debatable, but okay, what is the point? That PSU should not have been penalized so harshly because “surely” there’s someone else out there doing something worse? It’s not like the NCAA is limited in the number of programs they sanction. If someone else is caught doing “something worse,” then they can sanction them accordingly.</p>

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<p>A couple of points about the library with Paterno’s name on it–he raised millions of dollars to fund it, and contributed several million dollars of his own money. It was named in 1997, before the first incident with Sandusky (that we know about). It was completed in 2000–before the incident that was covered up. (The 1998 incident wasn’t covered up–it was dropped by the DA.)</p>

<p>I think that makes a difference–but if you think his name should come off the library, don’t you think PSU should refund the money he donated for the library to his family? (Cynical minds might wonder if PSU might be contractually obligated to return that money if it changes the name…)</p>

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<p>But that isn’t a small achievement. In fact, if that’s the result, the sanctions will have succeeded. Individual wrongdoing will be dealt with by the criminal and civil courts. The job of the NCAA was to penalize a football program that ran amok, and the university that allowed it to.</p>

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I don’t disagree. I would just say that this really only makes sense with respect to deterring people at other schools. Perhaps a period of restricted football is needed at PSU for purposes of rehabilitation, but I have to think that the powers that be at PSU would have agreed to any form of institutional control that the NCAA wants them to institute.</p>

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<p>" think that makes a difference–but if you think his name should come off the library, don’t you think PSU should refund the money he donated for the library to his family?"</p>

<p>He made his money and raised the money for that library based on his reputation. His reputation was made and maintained by facilitating the activities of a child rapist, and (we’ll see) being part of a criminal conspiracy to commit child sex trafficking. </p>

<p>And, no, I don’t think his family should get a dime, and, in justice, I think the university - in defense of its own integrity - should abrogate the retirement/pension agreement and let the Paterno family sue.</p>

<p>Regardless - every day that library keeps his name on it, the academic integrity of the university is compromised (faculty, where are you?), students learn that facilitating child rape can get your name on a building, and even more hurt is deliberately inflicted on the victims.</p>

<p>At least the statue was about football.</p>

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<p>Bill O’Brien is on ESPN now explaining his recruiting and coaching strategy going forward.</p>

<p>He’s selling the value of a Penn State degree, which is good to hear. But also playing up football-related perks, like playing in front of 108,000 fans, having a coaching staff that knows how to prepare players for the NFL. He downplayed the importance of losing bowl games, saying NFL recruiters look for “what you do on the field,” rather than performance in bowl games. Not quite sure I follow that. But he added that they are looking into having an end-of-year game with someone like University of Hawaii that would subsitute for a bowl game.</p>

<p>One strategy he’s planning to use going forward is to find Pennsylvania high schools students who would be getting low in-state tuition who would be interesed in “walking on” the team. </p>

<p>He has kept on a couple of assistant coaches from the Paterno regime. </p>

<p>He sounded surpriusingly upbeat, given the circumstances. (He did say there was an addendum to his contract in the case of NCAA sanctions, which “added years.” Not sure what that means)</p>

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<p>Great post and solid contribution to put the numbers in perspective. In addition, could the impact of the fine not be further mitigated by additional fundraising?</p>

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<p>Hunt, ESPN reported yesterday that Penn State was presented with the sanction package, and told that if they didn’t accept it, the death penalty would be forthcoming. So yes, they agreed to it in that sense. Time will tell if the football culture changes, but so far, I see no indication that it has.</p>

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Not unless there are facts that haven’t been revealed. The money was raised and the library named before 1998.</p>

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<p>[Pedophile</a> advocate featuredat university](<a href=“http://www.wnd.com/2002/03/13317/]Pedophile”>Pedophile advocate featuredat university)</p>

<p>PEDOPHILE ADVOCATE FEATURED
AT UNIVERSITY</p>

<p>Califia-Rice is the author of books such as “Macho Sluts” and “Public Sex: The Culture of Radical Sex.”</p>

<p>Apparently back in 2002, Spanier was brought onto the carpet for allowing certain type of speakers/festivals on campus. To the dismay of PA legislators,they did not want public taxpayer money funding it, they couldn’t do anything about it, of course Spanier claimed he did not know. </p>

<p>I really think Mini is correct this is not just Jerry Sandusky.</p>

<p>I was a freshman during one of Spanier’s former university appointments in 1982/83, I recall some pretty racy student life sponsored events/speakers back then, some of which if my parents knew, would have landed them in the hospital =)</p>

<p>Spanier has a belief system that is morally different. Of course this explains his inaction, however, does make one wonder what else is hidden.</p>

<p>Excerpt from Spaniers Thesis:
“We choose to view deviant behavior simply as behavior that some value and others consider wrong. An individual’s behavior becomes deviant only when others define it as deviant. Much of an individual’s behavior can be viewed as a response to this ‘labeling.’ Mate swapping, then, can be viewed as either deviant or normal behavior, depending on who is viewing it and from what perspective it is being viewed.”</p>

<ul>
<li>Graham B. Spanier, Mate Swapping: Perceptions, Value Orientations, and Participation in a Midwestern Community</li>
</ul>

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Yes, and it will be. The PSU faithful will do all they can to make sure the football program feels as little pain as possible here. If I were an alumni or parent, I would make my donation specifically going to academics, or another non-revenue sport of my choosing, to support them and make sure the ripple effect is as minimal as possible to those areas. The football program is supposed to feel this. The players, no, the program, yes. Can you separate the two, unfortunately no and that’s why the players have an out. Is this a perfect solution, no, however it’s better then many other players have been offered at schools facing sanctions.</p>

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<p>Just slightly off topic- UTenn quarterback Tyler Bray arrested for throwing beer bottles and golf balls off an apartment balcony at parked cars. Apparently he has agreed to restitution and no charges are being filed. However, in light of all the Penn State issues, it will be interesting to see what Coach Dooley does with him. Bray and some of the other players (well, more than some) have had previous “incidents”.</p>

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<p>Excellent… Very frustrating when these young men have such bright futures and then they act like thugs. Michigan’s having troubles of their own. Running back Fitz Toussaint was just suspended indefinitely a couple of days ago after a DUI arrest. It will be interesting to see if he’s playing by September. Defensive end Frank Clark was arrested last month and charged with second-degree home invasion. And defensive tackle Will Campbell pleaded guilty to a civil infraction for blocking a sidewalk. How does one get a civil infraction for blocking a sidewalk?! Sounds like he plead down IMO.</p>

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<p>"Quote
As reprehensible as those offenses, it’s possible that another school could have equal or worse offenses. Causing the death of someone and then covering it up would be seen as equivalent or worse. Or maybe a higher number of rapes victims by multiple perps.</p>

<p>Debatable, but okay, what is the point? That PSU should not have been penalized so harshly because “surely” there’s someone else out there doing something worse? It’s not like the NCAA is limited in the number of programs they sanction. If someone else is caught doing “something worse,” then they can sanction them accordingly."</p>

<p>No, that wasn’t my point. My point, or really my question, was if another school is found to have similar or worse offenses, but doesn’t have a deep pockets or award scholarships, what will the NCAA mete out? And if it’s far less, then won’t that become an issue?</p>

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<p>Which is another reason why the death penalty is warranted, IMO. </p>

<p>(Although I’m sure that wasn’t the point that you were trying to make. :slight_smile: )</p>

<p>Quite frankly, PSU and the BiG and the BCS got off easy. The Death Penalty would have hurt every non-rev sport, which includes the PSU women’s teams.</p>

<p>The Death Penalty would have cost the whole league dearly. They’d have a big hole in their fall schedules, and TV revenue would be hurt.</p>

<p>“Blunt instrument”? Absolutely. THAT is the point.</p>

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<p><a href=“http://www.nytimes.com/2012/07/26/sports/ncaafootball/what-kentucky-basketball-can-teach-penn-state-harvey-araton.html[/url]”>http://www.nytimes.com/2012/07/26/sports/ncaafootball/what-kentucky-basketball-can-teach-penn-state-harvey-araton.html&lt;/a&gt;&lt;/p&gt;

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<p>Nice article. Puts the whole thing in its proper perspective. Penn State did get off easy, if that team lost its TV showings for something way less criminal than what went on at PSU. </p>

<p>I wonder how that makes the victims feel, that the crimes against them didn’t warrant as much “punishment” as recruiting violations and academic fraud.</p>

<p>And to clarify, I am not saying this because I harbor any ill will toward Penn State. I just find it saddening that somehow money ruled the day here.</p>

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<p>[Report:</a> Penn State trustees question signing of NCAA decree](<a href=“http://www.usatoday.com/sports/college/football/bigten/story/2012-07-25/penn-state-trustees-consent-decree/56485674/1]Report:”>http://www.usatoday.com/sports/college/football/bigten/story/2012-07-25/penn-state-trustees-consent-decree/56485674/1)</p>

<p>Seems they still don’t get it.</p>