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Penn State’s Tab for Sandusky Scandal Exceeds $50 Million

The site in which the statue of former Pennsylvania State University football coach Joe Paterno stood sits empty after it was removed by workers outside Beaver Stadium in State College, Pennsylvania, on July 2012. Photographer: Patrick Smith/Getty Images
The site in which the statue of former Pennsylvania State University football coach Joe Paterno stood sits empty after it was removed by workers outside Beaver Stadium in State College, Pennsylvania, on July 2012. Photographer: Patrick Smith/Getty Images

Oct. 14 (Bloomberg) -- Pennsylvania State University has spent $50.5 million to manage the fallout from the scandal provoked by former assistant football coach Jerry Sandusky’s sexual abuse of young boys.

Updated figures released today on the university’s website include $6.8 million in expenses for the legal defense of former school officials, including ex-President Graham Spanier, who is charged with covering up allegations against Sandusky, and $1.9 million for an independent monitor for its athletics program. The accounting is current through July 31, according to the website.

Sandusky, 69, a former football coach, was sentenced in October 2012 to at least 30 years in prison for sexually abusing boys over a 15-year period, sometimes on the school’s campus in State College, Pennsylvania. The case and ensuing scandal led to firings of Spanier and legendary football coach Joe Paterno, who died in January 2012. Spanier and two other school officials face related criminal charges.

The expenses also include $12 million for the first of five installments on a $60 million fine imposed last year by the National Collegiate Athletic Association; $7.1 million for legal and consulting services to the school’s board of trustees and $11.5 million for the university’s legal defense paid to firms including Feinberg Rozen LLP, the settlement negotiator between the school and Sandusky victims.

The school spent an additional $2.1 million on other institutional expenses, according to the report.

Penn State is among four universities in Pennsylvania that receives public funding but isn’t owned by the state. The school received about $280 million from the state last year.

To contact the reporter on this story: Sophia Pearson in Philadelphia at spearson3@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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