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Penn State Loses One Sponsor, Others May Follow

The price of the child sexual abuse scandal at Penn State could go well beyond the $60 million fine and other penalties imposed by the NCAA.

Flickr user Joe Shlabotnik

State Farm is pulling its ads from broadcasts of Penn State football games, while General Motors is reconsidering its sponsorship deal and Wall Street is threatening to downgrade the school’s credit rating.

The NCAA imposed unprecedented sanctions against Penn State on Monday, including the fine, a four-year bowl ban and a dramatic reduction in the number of football scholarships it may offer.

The governing also erased 14 years of victories, wiping out 111 of coach Joe Paterno’s wins and stripping him of his standing as the most successful coach in the history of big-time college football.

 

(Copyright 2012 by The Associated Press.  All Rights Reserved.)

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