Penn State trustees vote to settle lawsuit against NCAA

By Jim Boyle | Aug 15, 2014

The Penn State Board of Trustees voted in favor of a resolution that would call for the settlement of two lawsuits filed against the NCAA over the payment of fines levied against the university as punishment for the Jerry Sandusky scandal.

The agreement would have both suits dropped if the NCAA agrees to distribute the $60 million in Pennsylvania, as opposed to programs nationwide. The board also pledged to continue following the rest of the sanctions prescribed by the NCAA's Consent Decree.

"For the past two years, the university, with appropriate vigor, has complied with the terms of the consent decree, and the university remains committed to full compliance with the consent decree as amended from time to time," reads the resolution.

The NCAA instituted harsh sanctions against Penn State after the publication of Louis Freeh's investigation report. Two years ago, the college was hit with the $60 million fine, plus a four-year ban on post-season play, a four-year reduction of grants-in-aid, four years of probation, and the vacation of sports wins dating back to 1998.

In an attempt to keep the fine dispersed in Pennsylvania, State Sen. Jake Corman (R-Benner), introduced the Institution of Higher Education Monetary Penalty Endowment Act, which requires any fines of more than $10 million collected from a Pennsylvania university that receives state funding to be spent in the commonwealth.

The NCAA challenged the constitutionality of the law when it passed the state assembly, saying it unlawfully interfered with a valid contract between two private entities.

A federal suit was also filed by State Treasurer Rob McCord against the NCAA over the same issue of paying out the fine. Wednesday night's resolution is non-binding, representing the collective opinion of the majority of the 29-member board.

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