The Penn State pedophile scandal is all-encompassing; the fallout from it is only in its infancy. And I hate to use a term relating to children when reporting on a child rape case, but the adverse effects on PSU have only just begun. This story is filled with sick, sordid details, and today we learned what might be the creepiest of all- Jerry Sandusky LIVES NEXT TO AN ELEMENTARY school!
Check out this Walter Football
The main glass window of Sandusky’s State College, Pa., home, which sits next to an elementary school and playground, had been smashed in and covered with a sheet, according to the report.
A separate report, citing a neighbor, indicated that vandals threw two bricks through Sandusky’s window.
Sandusky is free on $100,000 unsecured bail. He faces 21 felony counts for allegedly abusing eight male minors over a period of 15 years. He is due in court Dec. 7.
The lead in the story there is the vandalism, but the lead is the fact that he lives next to elementary school. That fact just verifies everything my father has told me about what a sick twisted and inherently dangerous effing world that we live in.
Part of the gathering storm in State College is financial, as a ton of civil lawsuits are likely forthcoming. And those prospective future payouts, coupled with the projected lost revenue as the football program starts its expected decline in future years will destroy the University’s bottom line. Paterno’s storied program and it’s 105,000 seat stadium brings in an estimated $70 million a year. That will lessen significantly as the program’s reputation is tarnished and the business of football is hurt on all levels.
According to Business Week:
Penn State University had its Aa1 revenue-bond rating placed on review for possible downgrade by Moody’s Investors Service amid the investigation into a child sex-abuse scandal.
Moody’s said it will examine the reputational and financial risk arising from the probe, after the Penn State football team’s former defensive coordinator, Jerry Sandusky, was charged with sexually assaulting eight boys from 1994 to 2009.
About $1 billion of rated debt would be affected by a downgrade, according to the statement. The company said it will take several months to monitor events, including possible lawsuits, weaker student demand, decreased philanthropic support, changes in its relationship with the state and management moves. Aa1 is Moody’s second-highest rating.
Of course, we all know from the financial crisis of 2008 how little credibility Moody’s has, but that doesn’t exactly mean that they’re wrong about the future fiscal health and liquidity of PSU.
All of this is going to destroy the college football program; and bring it down for years, maybe decades to come. Think SMU after the “Death Penalty” but worse. This goes beyond football; the university itself will suffer major hit after major hit in the years to come, and it’s a new darker landscape for PSU from both a branding and financial perspective.
Good column from Greg Couch at Fox Sports. Here’s an excerpt:
All those years of building a brand, building a name. No one will remember the Paterno Library, and don’t be surprised if they change the name. They might take Paterno’s name off the Big Ten trophy, too.
This is the new and lasting reality for Penn State. For decades, football Saturday was everything that Happy Valley could hope for. And you could argue that a game always makes things better, and that this week’s game might give fans a chance for normalcy.
A Fulbright scholar and MBA, Banks has appeared on live radio all over the world; he’s also a member of the FWAA, USBWA and SPJ. The President of the United States follows him on Twitter (@Paul_M_BanksTSB) You should too.Powered by Sidelines Follow paulmbanks