Penn State considers borrowing $30 million
STATE COLLEGE (AP) — Penn State trustees may be asked to approve $30 million in borrowing to help its Athletic Department cover costs resulting partly from the Jerry Sandusky child sexual abuse scandal.
PennLive.com reported Thursday that the request would be part of a $750 million borrowing package that trustees will consider today.
The Athletic Department posted a $15 million profit as recently as 2011. But university Controller Joe Doncsecz said its expenses outstripped revenues by $6 million this year.
Needs covered by the borrowing include up to $25 million in short-term capital needs, a $10 million line of credit and millions more to cover debt service on the $60 million fine the NCAA imposed for the Sandusky scandal.
Athletic Director Dave Joyner said the department should be in the black by 2018.