Stacey Vanek Smith: A bit earlier this morning the NCAA handed down its penalties to Penn State for the child sex abuse scandal.
Here’s NCAA president Mark Emmert.
Mark Emmert: No matter what we do here today, there is no action we can take that’ll remove their pain and anguish.
The Penn State football team is barred from all bowl games for four years and faces a $60 million fine.
Marketplace’s Nancy Marshall-Genzer has more on what this means for the school’s bottom line.
Nancy Marshall-Genzer: The reason Penn State was fined $60 million is that’s about how much the football program brought in for the school in fiscal 2011. Of course some of that money came from ticket sales. But the football program made money in lots of other ways.
Ellen Staurowsky teaches sports management at Drexel University.
Elle Staurowsky: In terms of where all that money comes from the combination of television revenue, merchandise and marketing, corporate sponsorship.
Staurowsky says Penn State football generated an additional $70 million for the state in fiscal 2011, with most of that money going to the area around State College, which is home to Penn State. That money includes profits from fans buying gas and food, and staying in hotels.
There’s also an intangible effect of the football program. It makes people want to go to Penn State. Staurowsky says there was no drop in applications for the coming year, with a healthy-sized freshman class enrolled for the fall.
In Washington, I’m Nancy Marshall-Genzer for Marketplace.
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?