Sandusky Sex-Abuse Scandal Has Cost Penn State $46 Million
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Penn State University officials still can’t bring themselves to say the name “Jerry Sandusky.” Hard to blame them.
In addition to the human tragedy of young lives damaged, Advertising Age estimates the Sandusky sex-abuse scandal has cost Penn State $46 million and counting since November 2011. And though some sponsor dollars look to be trickling back, it’s still a pittance compared to the loss.
On a site devoted to the Sandusky case, Penn State said it shelled out more than $41.1 million in NCAA fines and legal and consulting fees through Dec. 31, 2012. Ad Age estimates Penn State lost more than $1 million in sponsorship/advertising dollars from the likes of General Motors, Cars.com and Sherwin Williams. Another $700,000 in licensing royalties from merchandise sales was also lost. And next month, the Big Ten Conference will dock Penn State $3.25 million as the first installment in a four-year, $13 million penalty, according to Scott Chipman, the conference’s assistant commissioner. That represents Penn State’s share of conference-bowl revenue from the 2012 football season and will be donated to children’s charities.
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