Pa. lawsuit seeks to recover $12M PSU fine

State Treasurer Rob McCord and state Senator Jake Corman have filed a lawsuit against the NCAA to recover $12 million in penalties already paid by Penn State University in the wake of the Jerry Sandusky child sexual abuse case.

The lawsuit filed in Commonwealth Court argues that the NCAA must deposit the entire $60 million penalty into an endowment fund for child abuse prevention programs in Pennsylvania under a new state law enacted earlier this year.

Penn State paid the $12 million as the first installment of the $60 million fine last year.

Corman, a Republican whose district includes State College, said in a joint news release that he was repeatedly rebuffed in his efforts to hold an in-person meeting with
NCAA President Mark Emmert to discuss the use of the funds and ensure
that they would be used only in Pennsylvania.

Corman said an NCAA vice president who contacted him by phone refused his request for oversight of the funds and rejected the argument that the penalty money must stay within Pennsylvania.

The lawsuit argues that Penn State entered into consent decree under threat of the so-called “death
penalty”, a ban on participating in athletic events, and that the NCAA decided afterward that it would spend the penalty mostly
outside of Pennsylvania’.

The NCAA, the governing body of collegiate athletics, did not detail the intended use of the fund
in the consent decree, and has not identified the programs to which money will be directed, the lawsuit states.

The NCAA has filed a lawsuit to challenge the law authored by Corman, which requires
the money be spent in Pennsylvania.

McCord earlier this month asked a federal court to put the NCAA lawsuit on hold until other pending state and federal court proceedings are

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