Penn State will lose about $73 million because of NCAA and Big Ten-imposed sanctions, but that could just be the start of the university's financial setbacks.
University of Delaware Associate Professor of Sports Management Tim DeSchriver , co-author of a textbook entitled "Sport Finance," said the costs of the Jerry Sandusky sex abuse case could cost Penn State $400 to $500 million in the next 10 years alone.
DeSchriver, a 1993 Penn State master's degree recipient, said he estimates it will take 18 to 24 months to determine the financial toll of the fallout, which will include the new fines, civil lawsuit settlements, reduced booster support and more.
Costs stemming from legal matters related to Sandusky totaled $11.9 million through the end of April, including $7.6 million spent on investigation conducted by former FBI Director Louis Freeh that was commissioned by Penn State's Board of Trustees, and crisis communications.
Penn State President Rodney Erickson announced in a statement Monday that the university will pay for the $60 million NCAA fine, equivalent to about one year of football revenue, in annual installments of $12 million starting in 2012 . According to U.S. Department of Education data, Penn State reported $72,747,734 in football revenue for the 2011-12 season.
The money will go toward a special endowment created to fund "programs for the detection, prevention and treatment of child abuse," Erickson said in the statement.
Penn State Spokesman David La Torre wrote in an email that the university will use the "athletics reserve fund, capital maintenance budget and, if necessary, an internal bond issue, to address the fine."
"We're pleased the funding will be used toward important programs to help children who are victims of child abuse," La Torre said.
NCAA President Mark Emmert emphasized while addressing reporters at a press conference on Monday in Indianapolis, Ind., that neither Penn State athletics nor academics should suffer because of the instituted fines.
Other sanctions placed on the university's football program by NCAA are a four-year bowl game and postseason ban, reduction in scholarships from 25 to 15 and vacating all of the football team's wins from 1998 to 2011. The latter knocked late former head coach Joe Paterno off the top spot as the winningest head coach in college football history, reducing his victory count from 409 to 298.
Pennsylvania Gov. Tom Corbett said in a statement that he wants assurance from Penn State that no taxpayer dollars will be spent on fines.
Corbett said in the statement that he is "grateful" that the NCAA did not implement the "death penalty," or cancel the football season, on the university's football program, as he thought it "would have a severe detrimental impact on the citizens of State College, Centre County and the entire Commonwealth of Pennsylvania."
"Penn State is more than football -- it is a world-class university, providing an outstanding education to our young people in a variety of areas from scientific research and engineering, to the arts and humanities," he said. "I am confident that the university will move forward from this experience, complete the healing process and once again be worthy of its great reputation."
That leaves Penn State's football program as a potential source to levy fines, said Brian Soebbing, University of Louisiana assistant professor of sports management , one that will already be crippled by a four-year scholarship limit and postseason ban on players instituted by the NCAA.
Soebbing said he did not know how long it will take for Penn State to fully recover its losses, but a resilient alumni base, which raised more than $208 million for the university during the 2011-12 school year, may ensure a speedy comeback.
Historically strong recruiting in Pennsylvania may help as well, he said, as Penn State head coach Bill O'Brien seeks to keep his team's roster competitive.
"But, it's going to take some time," Soebbing said. "It's going to take patience among the fans and boosters to understand."
Taking a lesson from the costs Penn State will incur, other universities may begin searching for more revenue sources in case of a crisis from lucrative television deals to conference realignment, he said.
Time will tell if Emmert's power to fine other schools without normal judicial process will help or hurt the NCAA at large, DeSchriver said.
"The sanctions are giving the NCAA unprecedented power," DeSchriver said. "The NCAA president has traditionally had a weak position compared to a Roger Goodell in the NFL, but this is something Mark Emmert wants."
Collegian staff writer Joshua Glossner contributed to this report.
