Financial impact of the Sandusky Scandal

There is no doubt that Jerry Sandusky’s arrest has tarnished the image of Penn State. 

The child molestation charges facing the former football coach could also have a long term financial impact on the university.

September 2010, a stunning announcement brings big time college hockey to Happy Valley.

Penn State alum Terry Pegula made a donation of more than $80 million for a new ice arena and to upgrade the program to Division One status.

For now, the commitment from supporters is still there.

“It hasn’t affected us negatively at all”, said hockey director Joe Battista.  “As matter a fact, Terry Pegula and his wife Kim reassured us, said they are behind us 100%. The hockey alums are bonded together and we hope to be part of getting the program and focus back on positive things Penn State stands for.”

Penn State is in the middle of a two billion dollar fundraising effort. 

The football program stands to lose revenue, but newly appointed university president Rodney Erickson remains positive.

“Certainly there may be some impact at least in the short term”, said Erickson. “I have to tell you I’ve been very gratified by Penn State donors.  They have sent us numerous messages that said we will not let the actions of any individuals deter us.”

One local attorney disagrees and feels the scandal will have a far reaching financial impact.

“This is going to have a catastrophic effect on the economy and real estate values.”  Attorney Philip Masort added, “The economic loss of the football games will be felt if scrutiny results in less prestige.”

Also unknown is how much Penn State will potentially have to pay out in court settlements to the alleged victims.