Want to know how the largest scandal in college sports history cost Penn State almost $30 million and counting? The school released an itemized detail of the mounting costs for the continuing fallout from the Jerry Sandusky scandal.
The updated total expenses for the school in regards to the Sandusky scandal, counting through Nov. 30 of last year, is $27,663,423. That is completely separate from the $60 million fine by the NCAA as part of its sanctions.
Here's how the spending has gone, from Penn State's "Progress" page on its website:
• Internal investigations and communications: $13,084,105
This huge figure includes the Freeh Report.
• University legal services and defense: $7,478,235
The school lists 10 entities under this tag, mostly legal firms.
• Externally initiated investigations: $1,302,838
If you didn't know before, high-level investigations are quite expensive.
• Indemnified persons' legal defense: $3,955,718
This includes the legal fees for former Penn State president Graham Spanier, among others, according to the Patriot-News. As the school explained:
The Bylaws of Penn State state that "except as prohibited by law, every trustee and officer of the University shall be entitled as of right to be indemnified by the University against expenses (including counsel fees) and any liability (including judgments, fines, penalties, excise taxes and amounts paid in settlement) paid or incurred by such person in connection with any actual or threatened claim, action, suit or proceeding, civil, criminal, administrative, investigative or other."
Other Institutional Expenses: $1,842,527
Seems like a large number to just throw on the "miscellaneous" category.
So there you have it, Penn State's bill for the Sandusky scandal, if you count the NCAA fine, has probably passed $100 million since the last invoice was added to Penn State's report. The school makes clear that these costs are "not funded by student tuition, taxpayer funds or donations," but mostly by insurance policies, with anything not covered by insurance expected to be paid for by interest revenues on loans.
Not only has the Sandusky scandal been horrible for the university in many aspects, there's also a very hefty monetary cost to it as well.