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Sandusky scandal costing PSU millions

NEED TO KNOW
  • Former Penn State football coach Jerry Sandusky under house arrest, accused of raping, molesting children
  • Penn State says the scandal is costing the school millions

Penn State University says it has spent nearly $3.2 million on legal, public relations, and investigative fees because of the Jerry Sandusky scandal. The information was made public by a new university website aimed at informing students, alumni, and faculty about the latest developments of the scandal.            

READ MORE: As it happened: The Penn State scandal in photos

Here is the breakdown of the university’s costs according to the site:

  • Internal Investigation and Crisis Communications: $2,468,137

  • University Legal Services/Defense: $467,940

  • Externally Initiated Investigations: $50,131

  • 

Officers Legal Defense (Schultz, Curley, Spanier): $210,309


  • Total as of Dec. 31, 2011: $3,196,517

On the site’s frequently asked questions page, the university states where the money to pay for the scandal is coming from:

“The University maintains General Liability and Directors & Officers insurance policies which are expected to cover the defense of claims brought against the University and its officers, employees and trustees. Legal and other expenses not covered by insurance are expected to be funded from interest revenues with respect to loans made by the University or from additional payments made by the athletic department to the University with respect to the financing of the most recent Beaver Stadium expansion. Therefore, these uninsured expenses will not be funded by student tuition, taxpayer funds or donations. Compensation paid to all such attorneys, consultants and firms will be regularly updated.”

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