Pennsylvania State University's $60 million in fines from the National Collegiate Athletic Association will be placed in a new endowment “to fund programs for the detection, prevention and treatment of child abuse,” Rodney Erickson, university president, said in a statement.
The university will make contributions of at least $12 million per year for the next five years.
According to a statement on the NCAA's website, the proceeds of this fine cannot be used to fund programs at Penn State, nor can any sponsored athletic team at the university be reduced or eliminated in order to fund the fine.
The penalty is unprecedented, Ken Redd, director, research and policy analysis, at the National Association of College and University Business Officers, wrote in an e-mail. “There is no guidance yet as to how this would be handled.”
Kathleen T. McNeely, NCAA vice president of administrator and chief financial officer, could not be reached immediately for comment on how the new endowment would be managed; other calls to the NCAA and Penn State were not returned by press time.
The fines are the result of what the NCAA on Monday said was the failure of the university's leadership to “value and uphold institutional integrity, breaching both the NCAA Constitution and Division I rules” in the aftermath of the sexual abuse conviction of former assistant football coach Jerry Sandusky.
The amount of the fines is equal to the average gross annual revenue of the football program, according to a statement on the NCAA's website.