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Penn State’s Sandusky Costs Top $51.8 million

It’s the monthly news story that we just can’t escape.

Penn State announced yesterday on its Progress website that the cost of related expenses to the Jerry Sandusky fallout has reached nearly $51.8 million.

This figure is a $1.3 million increase from the last time Penn State updated the cost from the previous month. In all, Penn State has spent $6.9 million on legal defense, $1.1 on “external investigation”, $12 million on university legal services, $7.3 million on consulting for the Board of Trustees, $2.1 million for the NCAA monitor, $8.1 million for the Freeh report, and $12 million for the first installment of the NCAA fine.

Bill Shackner from the Pittsburgh Post-Gazette took an interesting approach and cut through the university’s PR-softened numbers. Shackner puts the impact at approximately $171.5 million in immediate liabilities, as Penn State failed to include the $48 million in NCAA fines not yet due, $59.7 in settlements for Sandusky’s victims, and the $13 million in lost bowl revenue.

Here’s the breakdown Penn State published yesterday:

  • NCAA Fine: $12,000,000
  • Freeh Sporkin & Sullivan/Pepper Hamilton LLP: $8,171,177
  • Independent Monitor: $2,123,213
    • DLA Piper, LLP (NCAA Monitor)
  • Board of Trustees – Legal Services, Consulting Services and Communications: $7,355,608
    • Reed Smith LLP
    • Ketchum
    • Kekst and Company Inc.
    • Daniel J. Edelman, Inc.
    • Domus Inc
    • The Academy Group
    • TAI
    • KPMG
    • Ethics Resource Center
    • Other
  • University Legal Services/Defense: $12,014,338
    • Saul Ewing
    • Duane Morris
    • Lanny J. Davis and Associates
    • Jenner & Block, LLP
    • ML Strategies
    • Lee, Green & Reiter Inc.
    • Document Technologies, Inc.
    • White and Williams, LLP
    • Feinberg Rozen, LLP
    • Other
  • Externally Initiated Investigations: $1,149,920
    • Margolis & Healy
    • Lightfoot, Franklin, White LCC
    • Buchanan Ingersoll
    • Saul Ewing
    • Guideposts Solutions LLC
    • Other
  • Indemnified Persons’ Legal Defense: $6,858,381
    • Farrell & Reisinger
    • Caroline M. Roberto
    • Vaira & Riley
    • Schnader, Harrison, Segal & Lewis, LLP
    • Gover, Perry & Shore
    • Gentile Meinert Assoc/CSI
    • Fox Rothschild LLP
    • Hamburg & Golden, P.C.
    • Cohen & Grigsby
    • Dinsmore & Shohl
    • Camson Rigby
    • Robert A. Leonard
    • General Indemnified Persons’ Defense
    • Various Vendors
    • Other
  • Other Institutional Expenses: $2,119,488

Total as of Aug. 31, 2013: $51,792,125

About the Author

Kevin Horne

Kevin Horne was the editor of Onward State from 2012-2014 and currently holds the position of Managing Editor Emeritus, which is a fake title he made up. He graduated from Penn State with degrees journalism and political science in 2014 and is currently seeking his J.D. at the Penn State Dickinson School of Law. A third generation Penn Stater from Williamsport, Pa., Kevin is also the president of the graduate student government. Email: [email protected]


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