PSU: Fine not as impactful as it seems

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PSU: Fine not as impactful as it seems

By RACHEL COHEN & BRENT KALLESTAD
NEW YORK -- The 60 million fine levied on Penn State by the NCAA doesn't look so big next to the scale of the athletic department's finances.
Penn State plans to pay the fine, part of sanctions announced Monday over the child sexual abuse scandal, in five annual installments of 12 million.
The Penn State athletic department had more than 116 million in revenue to more than 84 million in expenses for the 2010-11 school year, according to data reported by the school to the U.S. Department of Education. The expenses don't include debt service or capital expenditures.
Penn State won't be able to save money by making cuts in other sports. The NCAA specifically prohibited that as part of the punishment.
Instead of simply cutting costs, the athletic department can make up for any shortfalls in another way: raising money.
Major college athletic departments receive significant financial support from booster clubs. The Nittany Lion Club took in more than 82 million for the 2011 fiscal year, according to its annual report. That includes 34 million in special gifts for facilities. Its annual fund brought in 17 million, and donations for suites and club seats at Beaver Stadium totaled 12 million.
There were 50 contributors who gave at least 20,000 each.
Bob Harrison, Class of 1962, has donated more than 250,000 to Penn State in his life. Frustrated that the NCAA based its sanctions on what he considers a deeply flawed Freeh report, Harrison's support for the school and the athletic department has not wavered. And he believes he's not the only booster who feels that way.
"I would say a high percentage supporting the athletic program will continue to," said Harrison, who worked for Goldman Sachs for 28 years.
Pennsylvania Gov. Tom Corbett demanded assurances from the university that taxpayer money would not be used. Penn State said it would cover it with its athletics reserve fund and capital maintenance budget and, if necessary, borrow money.
The reduction in football scholarships handed down by the NCAA will save the athletic program some. The accompanying bowl ban could also reduce costs, because schools often lose money on lower-level bowls.
The NCAA said the 60 million represented the average annual gross revenue of the football program. The money will go toward outside programs devoted to preventing child sexual abuse or assisting victims.
The Big Ten also announced that Penn State would not be allowed to share in the conference's bowl revenue during the postseason ban, an estimated loss of about 13 million.
At Penn State, the men's basketball team had profits of nearly 5 million in 2010-11, according to the Department of Education report. Teams other than football and men's basketball had about 23 million in expenses, and the athletic department spent another 36.5 million on expenses not allocated to a particular sport. Football cost 19.5 million.
Of course, football revenue could lag if the team struggles badly on the field as a result of the sanctions, and ticket sales decrease.
The university said earlier this month that its fundraising was strong over the past year despite the scandal. Penn State received more than 208 million in donations for the fiscal year that just ended, the second-highest total in school history.

Media picks Virginia Tech, Virginia to finish low in the Coastal Division

Media picks Virginia Tech, Virginia to finish low in the Coastal Division

Expectations in Blacksburg and Charlottesville are high for their new coaches, just not among the media.

With Justin Fuente taking over for Frank Beamer at Virginia Tech and Broncon Mendenhall for Mike London at Virginia, the media is not expecting much from either coach in their first season. Virginia Tech was picked to finish fourth in the Coastal Division in the ACC Media Poll while Virginia was picked dead last.

Here are the full results with first place votes in parentheses:

Coastal Division
1. North Carolina (121) - 1,238
2. Miami (50) - 1,108
3. Pitt (14) - 859
4. Virginia Tech (3) - 697
5. Duke (2) - 597
6. Georgia Tech (1) - 588
7. Virginia - 261

Atlantic Division
1. Clemson (148) - 1,293
2. Florida State (42) - 1,176
3. Lousiville (1) - 961
4. NC State - 704
5. Boston College - 441
6. Syracuse - 426
7. Wake Forest - 347

ACC Championship
1. Clemson - 144
2. Florida State - 39
3. North Carolina - 7
4. Louisville - 1

Fourth is the lowest Virginia Tech has been picked since the ACC split into divisions in 2005. The good news for both Hokies and Cavaliers fans is that the media is almost always wrong when it comes to these polls. Last year's Coastal winner, North Carolina, was picked to finish fifth in last year's poll.

The lowest Virginia Tech has been picked to finish in the ACC was sixth in 2004, the Hokies' first year in the league. Virginia Tech went on to win the conference that year and played in the Sugar Bowl.

RELATED: TMZ RELEASES VIDEO OF MARCUS VICK RUNNING FROM POLICE

TMZ releases video of Marcus Vick running from police

TMZ releases video of Marcus Vick running from police

Marcus Vick has had a tough day.

First, he decided to start a Twitter beef with Buffalo Bills running back LeSean McCoy. Vick insinuated on Twitter that his ex-girlfriend contracted an STD from McCoy. (You can read the Tweets here but please note they contain explicit language).

As if that wasn't dumb enough, TMZ released video of Vick running from police in an April incident that resulted in his arrest.

In the video, three Cops are standing around Vick when he takes off. He makes it outside and down the sidewalk. It looks like he may get away, but then he sits down and gives himself up as a cop approaches with his gun drawn.

Vick was wanted for contempt of court in Montgomery County. As officers attempted to arrest Vick, he instead chose to flee from the police. That's right, Vick fled from police over a contempt of court charge. He ultimately pled guilty to resisting arrest.

RELATED: HALL TO BE INDUCTED INTO VT HALL OF FAME

DeAngelo Hall to be inducted into Virginia Tech Hall of Fame

DeAngelo Hall to be inducted into Virginia Tech Hall of Fame

Former Virginia Tech standout and current Washington Redskins safety DeAngelo Hall will be inducted into the Virginia Tech Sports Hall of Fame, the school has announced.

Hall played for the Hokies from 2001 to 2003, catching an interception as a true freshman in the very first game of his collegiate career. He was a dynamic player for Virginia Tech on defense, offense and special teams, scoring touchdowns in all three phases of the game. Hall remains the only player in school history to return two punts for touchdowns in the same game which he did in 2003 against Syracuse. He also played a major role in one of the biggest wins in program history, a 31-7 win over No. 2 Miami in 2003 in which Hall scored a touchdown on a strip and return.

The Chesapeake, Va. native was named an All-American after the 2003 season. He left Virginia Tech after three years and was selected by the Atlanta Falcons in the 2004 NFL Draft. He is now in his eighth season in Washington.

Kerri Gardin, Kevin Jones, Spyridon Jullien, Ashlee Lee and Jim Weaver will also be inducted with Hall. The ceremony will take place on Sept. 16 and all six will be introduced the following day during halftime of Virginia Tech's game against Boston College.

RELATED: VIRGINIA TECH LANDS FOUR COMMITMENTS SATURDAY