Penn State Sanctions resulting from the Sandusky scandal

[RoyJackson]

Good post, Dan!!

PSU isn't funded fully by Pennsylvania...it's about 7%. I checked on this with my local representative right after Sandusky was busted and Paterno was fired.
If there are lawsuits...well, there already has been one filed and I expect more, I'm sure most PA taxpayers will pressure their state representatives to refrain from any involvement or allow any taxpayer funds to be used for reparations or defense.
This may be the end of PSU as we know it...

 

[dmccarty]

Good post, Dan!! PSU isn't funded fully by Pennsylvania...it's about 7%.... This may be the end of PSU as we know it...

Wow, only 7%. I never would have guessed it was that low. A bigger question is why did Spanier cover this up? Yes, Sandusky was using PSU facilities and yes there was some connection with PSU and Second Mile but the crime was Sandusky's. Why protect Sandusky? Why cover this up?

Certainly it would be embarrassing to PSU but eventually what was happening was going to be known. By covering this up, Spanier made what was at first, a cleanable blemish on PSU, into what will now be a permanent stain. There is some question in my mind on what did Spanier know and when. In any case, he should have been asking more questions. The idea that a faculty member was in the shower with a child should have set off all sorts of alarms. There was no doubt that Sandusky was in the shower with a child. There was not plausible reason for that to occur. Spanier certainly should have told the Board of Trustees. Why did Spanier not report this to the board? By reporting the situation to the board it covers Spanier's fanny. By not reporting to the board, Spanier but his head on the block. Why? The only reason is that there is a bigger scandal that Spanier is hiding or he is an idiot. I don't think Spanier is an idiot.

Curley and Shultz MIGHT not have been giving all the information that they knew to Spanier. That is possible but it seems like Spanier knew enough to really question what Sandusky was doing and preventing Sandusky's access to PSU facilities. Spanier did not prevent access and actually allowed Sandusky to continue his crimes at PSU. Spanier approved a highly unusual title and retirement package on Sandusky. Why? If anything Sandusky should be PAYING OFF Spanier but it appears that Spanier was paying off Sandusky? Why?

Spanier's actions and the DA's deserve more investigation. Did they know more about Sandusky than has been reported? I really find it hard to believe that Paterno had not heard rumors about Sandusky over the years since there were other incidents with Sandusky and boys in PSU facilities before the 1998 incident. With the DA disappeared, and presumed dead, as well as Paterno being dead, I doubt we will ever know the truth. This think really stinks. It stinks real bad.

PSU certainly is at risk at loosing quite a bit of money from lawsuits but that money will never replace what those boys lost much less for the suffering they and their families are enduring. Sandusky's crimes reverberate in the victims for decades if not a lifetime.

Later, Dan
EDITed to clean up some really wacky formatting that happened for some reason.

 

[Gator6x4]

Penn State was making over 60 million a year from the Football Program. From all reports school officals had known about the abuse from 1998. So while they allowed the abuse to continue they, Penn State made over 720 million dollars. They had no intention of ever killing the cash cow regardless of how many childrens lives were destroyed. Do I think the punishment was sufficient, NO. Do I think the punishment should be more severe, YES.

It would be interersting to hear/read what would be said if each poster had to start his/her post with; "If one of the victims was my son, I think this is what should have been done".

I think the responses would have been very enlightening to read.

 

[Pixguy]

Penn State was making over 60 million a year from the Football Program. From all reports school officals had known about the abuse from 1998. So while they allowed the abuse to continue they, Penn State made over 720 million dollars. They had no intention of ever killing the cash cow regardless of how many childrens lives were destroyed. Do I think the punishment was sufficient, NO. Do I think the punishment should be more severe, YES.

It would be interersting to hear/read what would be said if each poster had to start his/her post with; "If one of the victims was my son, I think this is what should have been done".

I think the responses would have been very enlightening to read.

Like :thumbsup:

 

[brin]

Like :thumbsup:

Me too....put it that way , I agree :thumbsup:

 

[2manyrocks]

Some states have capped the amount of damages that can be recovered against the state. It's possible that the money damages that can be recovered in private suits against the college is a limited, fixed amount, but the personal damages that might be recovered against individuals might not be limited. I'm not saying this is the case here, but it's a possibility.

 

[RobertBrown]

Wow, only 7%. I never would have guessed it was that low. A bigger question is why did Spanier cover this up? Yes, Sandusky was using PSU facilities and

I'm with you.........
If you use even the slightest powers of deduction you come up with a big piece missing.
That piece must be very powerful for so many people to turn there backs on these kids.That just doesn't happen.

 

[Gator6x4]

Good post, Dan!!

PSU isn't funded fully by Pennsylvania...it's about 7%. I checked on this with my local representative right after Sandusky was busted and Paterno was fired.
If there are lawsuits...well, there already has been one filed and I expect more, I'm sure most PA taxpayers will pressure their state representatives to refrain from any involvement or allow any taxpayer funds to be used for reparations or defense.
This may be the end of PSU as we know it...

Penn State had $4.6 billion in operating revenue reported for the last fiscal year and an endowment topping $1.8 billion.

The university is currently involved in a legal battle with its main liability insurer, Pennsylvania Manufacturers' Association Insurance Co, over who should have to pay for any civil suits in the Sandusky scandal. It also owns its own insurer, Nittany Insurance Co of Vermont.

Pedophilia suits against Roman Catholic priests have generated damages ranging from $50,000 to several million dollars per victim and are a potential guideline for payouts in the Penn State case.

Using previous Pedophilia cases and settlements as a guideline, it could be one or more millions for each victim. Considering Penn State made approximately 720 or more millions during the time the molestation was occurring so lets be generous in our assessment and say each victim will receive five million. How much will that amount too, fifty or more millions. At fifty million, Penn State will still walk away with 670 of the 720 million. Probably more, depending on how much insurance has to cover.

I am sure Penn State has in all likelihood Insurance coverage to cover legal expenses for the College and Staff in civil suits given they are already in discussions with their main liability insurer, Pennsylvania Manufacturers' Association Insurance Co.

Because of the Sandusky scandal, Penn State is also facing investigations by the FBI, the U.S. Department of Education, the National Collegiate Athletic Association, a grand jury and the U.S. Attorney for the Middle District of Pennsylvania.

 

[dmccarty]

Regardless of where the settlement funds come from, insurance, the state, Alumni, endowment, etc, there are almost certainly going to be program cuts that will affect other people. Possibly people loosing their job who had nothing to do with this mess. This is not to say that the victims should not get a settlement, they should, but it is to say that the ripples of what Sandusky did go farther than just the direct victims and their families.

I think I have read of 13 victims. Lets say there are 10 and each victims get $5 million for a total settlement of $50 million. SOMEBODY is going to take a hit for that money and that will hurt other people. How much PSU made over the last N number of years is not really important. The money will have to come out of today's bucket of money which has been allocated. So something, well, lots of something will have to be cut which will affect other people. Its not like they have a bucket of money doing nothing. Even if the endowment was tapped, that just means future programs will be affected.

It is just one big mess, affecting quite a few innocent people.

Later,
Dan

 

[JHTFarmer]

A $50 million settlement would only actually net 10 victims about $3 million a piece. The lawyers would take at least $15 million off the top and probably another $5 million in "expenses" from the victims. not enough.

My prediction is the attorneys will shoot for the sky with this one. Settlement talks will start at $500 million or more. one thing is certain, Pennsylvania is going to have a few more minor league baseball team owning, private jet flying plaintiff attorneys.