Scandal Bills Mount at Penn State

The university says it has already shelled out nearly $17 million in legal and PR fees arising from the Sandusky scandal. Included are the costs of defending former school administrators Gary Schultz and Tim Curley.

Penn State has already paid out nearly $17 million in direct expenses arising from the Jerry Sandusky child sex abuse scandal.

Sandusky is the former Nittany Lion assistant football coach who in June was convicted on 45 counts of abusing boys. The scandal resulted in the firings of several key university leaders last November, including Hall of Fame football coach Joe Paterno, who died of lung cancer in January.

The amount the university has spent dealing with the scandal was released on Penn State's special Web site, progress.psu.edu. The exact figure — $16,754,149 — is described on the site as covering “legal fees, consultants and PR firms associated with the Sandusky matter.”

The biggest expenditure was for what the school calls “internal investigation and crisis communications.” The $9.972,854 covers the independent Freeh Report, which accused Paterno and other leaders of covering up the Sandusky scandal (and was the basis for harsh NCAA penalties against the university), as well as pubic relations services.

Legal services for the university total $3,941,776, “other institutional expenses” come to $1,171,892 and “externally initiated investigations” come to $56,182.

The most eye-opening number on the rundown, though, is $1,611,445 that has gone to “officers legal defense.” The money has been used to pay law practices and other businesses that are working to defend former school president Graham Spanier, former vice president Gary Schultz and former athletic director Tim Curley.

The Freeh report accused all three of covering up the Sandusky scandal. Schultz and Curley are awaiting trial on perjury charges stemming from their testimony to the grand jury investigating Sandusky. Spanier has not been charged with any crimes.

The figures released were through the end of June. The university says there is a 40-45 day lag time on releasing figures because it must wait for invoices to arrive for a particular month.

The latest numbers obviously do not take into account the $60 million fine levied by the NCAA in July.


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