Penn State has apparently had enough of the bickering over the NCAA’s $60 million fine. It’s asking everyone involved in the ongoing legal dispute to reach a solution.
As you know, the NCAA says it should decide how the money is spent. Pennsylvania Sen. Jake Corman filed a lawsuit arguing the money should stay in the state. The NCAA filed suit because a recently passed Pennsylvania law requires the money to be spent in Pennsylvania.
Frank Guadagnino, an attorney representing Penn State has sent a four-page letter to the lawyers representing both, the state and the NCAA, asking them to settle their differences.
In the letter, Guadagnino says, “your dispute over the use of the proceeds of the fine puts the University between the proverbial rock and a hard place. lt is not in the best interests of the University to be drawn into litigation in which it is not a party, takes no legal position and has no financial interest in the outcome.”
Penn State’s fine – which will be distributed to charities and programs that aid victims of sexual abuse – was one of the penalties levied against the university when Penn State President Rodney Erickson entered into the consent decree with the NCAA.
Penn State paid the first $12 million installment into an escrow fund in December.
Guadagnino says over the past few weeks, Penn State has had discussions with state officials and the NCAA. The letter is essentially meant to keep everyone on the same page.
Nils Hagen-Frederiksen, a spokesman for Corbett, said the governor has received the letter and is reviewing it at this time. Corman and the NCAA could not be reached for comment.
“The university is potentially in the middle of two conflicting legal demands,” Guadagnino writes. He says the university has not taken either side.
Until a judge makes a final decision or the NCAA and the state can come to an agreement on their own, Penn State will hold on to the $12 million it’s already paid, Guadagnino says.
“Although we believe it unnecessary, the university would be willing, pursuant to an agreement of all parties, to deposit the money with a court, the state treasury or a mutually acceptable third party escrow agent,” the lawyer writes, though Penn State would prefer that both parties come to an agreement without needing a court’s intervention.
Penn State’s penalties, set forth by the consent decree, include the $60 million fine, a significant loss of scholarships for the football team, a four-year postseason bowl ban for the football team and all wins under former coach Joe Paterno vacated between 1998-2011.
