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Penn State Asks Parties to Settle $60M Dispute

Former Penn State assistant football coach Jerry Sandusky was convicted last summer of sexually abusing boys, some of them on campus.Former Penn State assistant football coach Jerry Sandusky was convicted last summer of sexually abusing boys, some of them on campus.HARRISBURG, Pa. — Penn State asked the NCAA and Pennsylvania government officials to settle litigation over who will control the $60 million the school must pay for child abuse prevention efforts under a consent agreement it signed nearly a year ago.

University attorney Frank Guadagnino wrote to other attorneys Tuesday, saying the school had no desire to get involved in pending state and federal court battles. His four-page letter said Penn State intends to hold onto the first $12 million installment until the NCAA asks for it.

“We note that a settlement of the dispute would permit the funds to be used for their intended purpose in an expeditious manner,” Guadagnino wrote, offering to meet with the parties if they think the university can help settle the matters. The money is designed to aid child sexual abuse prevention and to help its victims.

The consent agreement was signed shortly after former Penn State assistant football coach Jerry Sandusky was convicted last summer of sexually abusing boys, some of them on campus.

At issue, Guadagnino said, is that if Penn State pays the money to the state, it could run afoul of its deal with the NCAA. If it pays the NCAA, it could violate a state law passed in January that requires the money be paid into the state treasury, he said.

The letter was first reported Wednesday by the online news site Capitolwire.

The NCAA is pursuing a federal court challenge to the new state law, a case that is in its early stages. Also, state Sen. Jake Corman, R-Centre, and Democratic state Treasurer Rob McCord are suing in state Commonwealth Court over the use of the money, with oral arguments scheduled for June 19.

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