Penn State Has Lost $17 Million Courtesy Of Jerry Sandusky, More Losses To Follow
Jerry Sandusky has cost Penn State nearly $17 million in legal fees, consultants, and public firm finances.
The university announced on Tuesday that the fees associated so far with the case run through the end of finances on June 30.
$10 million from the university’s funds have went to seven firms responsible for the university’s internal investigation and crisis communications efforts. An additional $4 million was spent on legal services and defense costs.
With multiple lawsuits being filed by Sandusky’s accusers the universities losses are likely to skyrocket as settlements and verdicts are reached. Given the public outcry against Jerry Sandusky, it is likely the university will pay big to each accuser rather than facing what could turn into million dollar settlements for each accuser.
According to university officials, money is not being paid from student tuition, taxpayer funds, or donations. Instead, university officials have revealed that court and other legal costs will be paid by the university’s insurance policies and money Penn State earns from student loan interest.
Penn State has also been forced to pay $60 million in NCAA issued fines. Those fines were announced in July.
Despite mounting concerns over the university’s social perception, Penn State over the last year has managed to raise more than $200 million from alumni, businesses, and other donors who have thrown their full support behind the university’s future.
Do you think Penn State deserves to pay more in legal and court fees, or has the university been punished enough for its extremely poor oversights regarding Jerry Sandusky?