I thought this was interesting from CBS moneywatch; sorry for the lengthy post.
Moody's Investors Service last week said it would review Penn State's Aa1 bond rating for a possible downgrade because of the reputational and financial risk stemming from the sexual abuse scandal at the university. Penn State's former defensive coordinator Jerry Sandusky was charged with sexually assaulting eight boys from 1994 to 2009.
The scandal cost Penn State football coach Joe Paterno and President Graham B. Spanier their jobs.
Those costs are likely to pale in comparison to what's coming down the pike. As Moody's noted, Penn State's financial worries are going to play out over a series of years.
Here are a few educated guesses on the financial fallout Penn State will see:
Lawsuits. Penn State will have to spend millions defending itself from lawsuits. In addition to those legal fees will be potential damages. As Sandusky's alleged victims come forward, the damages could swell from millions to billions of dollars.
Enrollment. Paterno was the face of Penn State who went well beyond the football field. The natural comparison to the Penn State scandal is the Catholic Church, which lost many followers with its own sexual abuse scandal. It's not a leap to figure that some prospective students may not choose Penn State following the sexual abuse scandal. Penn State's 2011 enrollment was 86,205, down from 87,309 in 2010, according to the university's fact book. Given the rising costs, higher education is already a bubble waiting to happen, and diploma return on investment needs to be considered. The great unknown: Has Sandusky tainted the value of a Penn State diploma?
Alumni contributions. According to the Council for Aid to Education, Penn State raised $195.3 million last year. That sum is second in Pennsylvania to the University of Pennsylvania, which had gifts totaling $381.6 million. Penn State's 557,331 alums may hold on to their wallets and crimp the university's programs.
Nittany Lions. Penn State football may not be a breadwinner going forward. Penn State has an interim coach and the Sandusky scandal may mean that the university lost its recruiting class too. Penn State's stadium was packed for a game with Nebraska Saturday, but recruiting will suffer. Ultimately, weaker recruiting means fewer wins and less revenue for the school. Technically, Penn State's intercollegiate athletics are self-supporting, but may be pinched without the halo effect of the football team.*
Sponsorships. So far no corporate sponsors have pulled their support from the Penn State athletic program, according to the Wall Street Journal, but it's certainly a possibility. As lawsuits drag on, the emerging details could spook marketing departments. Penn State sponsors include GM, Mohegan Sun, and Highmark.
In other words, the Sandusky scandal is going to hammer Penn State's budget going forward. For 2010-2011, Penn State had a $1.88 billion operating budget, which was already under fire do to state budget cuts. Penn State's appropriation from the state of Pennsylvania is now back to 1995 levels.
Thanks!
Michigan is my top school but its also one of the hardest to get into. I think they got a record number of applications this year. I like its good mix of academics,athletics, and social life. I plan on majoring in biomedical engineering.
Michigan is certainly one of the best universities in the nation. Ann Arbor is very nice as well. People underrate it, but location is a huge part of college. There are many places (for example, Gainsville) out in the middle of nowhere that really aren't much fun to be at.
The U.S. "Justice" system is such a ****ing joke sometimes. Guys are spending months/years waiting behind bars to go trial for victimless offenses while this child molester piece of **** gets to roam free and travel. Unbelievable.
The death penalty is something that makes me lol. Takes a long time to happen, almost a waste
In that case, you shouldn't bother considering anything related to athletics or social life when deciding on a school, since you won't have time for them anyway.
But in all seriousness UM is a great school, although I can't say anything definitive about that program there. Did you apply to Purdue? From everything I've seen visiting there for conferences, their engineering programs are the freaking bee's knees. They have a seemingly unlimited flow of money there for new buildings related to high-tech engineering. Their nanotech center, which is right next to a bunch of new biotech buildings, is something to behold.
As long as I enjoy what I'm doing it shouldnt be too bad.
And no I didn't apply to Purdue. I probably should have but I didn't feel like writing 2 more essays.
Also I'm curious if you're an engineer? I've been wondering ever since I saw some of your posts in a math related thread and your username. You seem really smart
As long as I enjoy what I'm doing it shouldnt be too bad.
And no I didn't apply to Purdue. I probably should have but I didn't feel like writing 2 more essays.
Also I'm curious if you're an engineer? I've been wondering ever since I saw some of your posts in a math related thread and your username. You seem really smart
The photo was apparently a hoax and TMZ has now changed the story. Maybe some of you should have waited to criticize the justice system for allowing him to roam until a slightly more credible source emerged.
This scandal has not really gotten worse since the prostitution rumor. It seems like it has gravitated toward "cleaning house" and the ramifications for the university itself instead of Sandlusky, what exactly he did, and who covered up what for him.
From our local newspaper:
STATE COLLEGE — The president of the charity linked to the Penn State child sex-abuse scandal has resigned, saying he hopes his departure after 28 years as the group's CEO would help restore faith in its mission.
The Second Mile's board of directors said in a statement Monday that it had accepted the resignation of Jack Raykovitz.
- We will conduct an internal investigation to assess our internal policies, procedures and processes; andmake recommendations regarding the organization’s future operations. We hope to have those findings by the endof December.
Right, just trying a little CYOA and damage control after the fact; Pandora's Box has been opened and no amount of "internal investigation" is going to close it.
Quote:
- We have engaged as our General Counsel the firm of Archer & Greiner, including partner LynneAbraham. Archer & Greiner succeeds Wendell Courtney, who resigned from that position last week.
The photo was apparently a hoax and TMZ has now changed the story. Maybe some of you should have waited to criticize the justice system for allowing him to roam until a slightly more credible source emerged.
You're right about me jumping to conclusions in this case, but stuff like that happens all the time, so the story was entirely believable at first.
LOL. I can't believe what I just read on ESPN's Bottom Line. Sandusko basically denying it all but the showering and hugging part. Would all these people REALLY make it up? I could see one person but a handful?
LOL. I can't believe what I just read on ESPN's Bottom Line. Sandusko basically denying it all but the showering and hugging part. Would all these people REALLY make it up? I could see one person but a handful?
that is why McQueary is so important in this. He is only one who saw him molesting anyone (the janitor is like 80 years old and allegedly suffers from dementia). As far as I know they have no physical evidence and no confession.
The Penn State football sex scandal, and the depraved response of the university community at all levels, tells whatever you need to know about the spiritual condition of this floundering, rudderless, republic and its ignoble culture.
STATE COLLEGE, Pa. — Close to 10 additional suspected victims have come forward to the authorities since the arrest of the former Penn State defensive coordinator Jerry Sandusky on Nov. 5 on 40 counts of sexually abusing young boys, according to people close to the investigation. The police are working to confirm the new allegations.
