Among the schools with the athletic programs that make the most money one thing that stands out is how much Penn State University’s athletic department revenue has fallen since 2011 while almost all other schools saw their revenue increase.
The year 2011 is important because that was the year that the Jerry Sandusky child rape scandal broke. Since then, revenue in the athletic department has fallen 9.7%, from sixth to 12th overall in just two years, while the other schools among the top 20 have seen their revenue increase by 14.9% during the same period.
If Penn State had shown the same level of growth as the other schools from 2011 to 2013, their revenue would have been $US133.4 million in 2013, a difference of $US28.6 million. Add that to the $US60 million in fines and it can be estimated that the scandal has cost the school at least $US89 million in just the first two years.
Of course, the true cost is likely much higher as this does not include costs associated with the school’s own investigation, the hiring of lawyers, lawsuit settlements, and any drop in donations to the rest of the school as a result of the school’s tarnished image.
But if we are looking for a starting point, $US89 million over the first two years appears to be that number.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.