Penn State University, an institution prized for its athletics programs and strong academics, has paid a total of $41 million thus far to pay for litigation and other costs associated with the Jerry Sandusky child sex abuse scandal, according to a report issued by USA Today on March 12, 2013.
Costs relating to the FBI investigation alone amount to $8.1 million, according to a document revealing the agreement made with FBI director Louis Freeh. Add to that the first of the five $12 million annual installment payments to cover NCAA fines plus other legal costs and damages, and you have one incredibly expensive $41 million tab through the end of December, 2012.
Penn State Alumni and others would like to see an itemized breakdown of the costs, both to reveal how much was paid to whom and to promote the honesty and transparency of Penn State University. They argue that loyal Penn State alumni, as well as the public at large, deserve to know exactly who was paid and why. Ultimately, critics want to see the actual engagement letter agreement with Louis Freeh so that the world can learn the extent of Freeh’s involvement and responsibility in the scandal’s investigation.
Tallying up the costs clearly reveals the high price of modern day scandals- a cost that is exceptionally high for any company or institution, but that hits especially hard for an educational establishment. Penn State does receive a large level of public support and it is the recipient of millions for research and other activities. But $41 million is still a very large sum of money and represents significant funds that could have been used for furthering the education and livelihood of the student body and the university’s outreach. The figure is only going to grow over the next few years as the $12 million installment payments become due and payable. When the entire ordeal is finally laid to rest, the total cost could easily approach $100 million or more.
There is little that Penn State University can do to reverse the damage already done, but the school administrators can at least help restore the school’s reputation by acting in an open and transparent manner. Anything relating to the scandal, financially or otherwise, should be released to the public whenever feasible. The openness and honesty will go a long way toward improved relations with alumni and the public and will help the university regain its good name.
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