IBJNews

NCAA says Penn State fine money in special account

Back to TopCommentsE-mailPrintBookmark and Share

The NCAA said Thursday it has no immediate plans to spend the $12 million already paid to it as part of the sanctions against Penn State University over its handling of child sex abuse allegations against former assistant football coach Jerry Sandusky.

The fate of that money — and the rest of the $60 million Penn State owes the Indianapolis-based NCAA — is the subject of two legal challenges, one from a state lawmaker and the other from Pennsylvania's governor.

On Wednesday, a Pennsylvania judge put on hold state Sen. Jake Corman's request for an injunction barring the NCAA from spending the money. Corman asked for the injunction request to be put on hold, indicating the filing had the support of the NCAA.

NCAA spokesman Bob Williams said the organization has not been negotiating with Corman, either about spending the $12 million or the larger lawsuit, and called his lawsuit groundless.

Corman, a Republican who represents State College and chairs the Senate Appropriations Committee, sued the NCAA two weeks ago, arguing the NCAA's plans to spend $60 million over five years from Penn State runs afoul of his oversight role in state spending. The state contributed $214 million this year to Penn State, which has a $4.3 billion budget.

"We believe the senator's lawsuit is without basis, and we intend to proceed with the litigation," Williams said. "As we've explained to the senator's lawyers in our discussions, no funds will be disbursed until a third party administrator is appointed, and until that time the funds are held in an independent account not controlled by the NCAA."

Corman's request to put on hold his injunction said the NCAA informed him "that for multiple reasons it has no intention to disburse or otherwise dissipate said funds in the immediate future," and agreed to give Corman two months' notice if that changes.

At a convention in Grapevine, Texas, NCAA president Mark Emmert disputed Corman's statement that the NCAA has been negotiating over the lawsuit and said his organization will never see the money or decide where it is spent.

"A group of presidents and others are setting up the framework by which all that will happen," Emmert said. "As they set that up and get it all in place, then indeed that group can make a decision to dispense money."

Commonwealth Court Judge Keith Quigley's order put Corman's application for an injunction on hold unless Corman seeks to reactivate it.

Also Wednesday, Corman introduced a narrowly focused bill, the Institution of Higher Education Consent Decree Endowment Act, which would determine how matters such as Penn State's are handled. Corman's office said he believes it would also apply to the NCAA-Penn State consent agreement.

The act's primary provision is that fine money must go into a custodial trust in the state treasury, and the Pennsylvania Commission on Crime and Delinquency would distribute the money in the state for child sexual abuse prevention or to help victims.

The NCAA also is defending a federal antitrust lawsuit filed Jan. 2 by Gov. Tom Corbett that seeks to have the $60 million fine and other penalties against the university thrown out. There have not yet been any additional substantive filings in that case.

Penn State and the NCAA entered into the agreement in July, following Sandusky's conviction on 45 counts of child sexual abuse. The former assistant football coach is serving a 30- to 60-year state prison sentence but maintains his innocence.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

ADVERTISEMENT