Penn State Provides Paterno’s Estate with Over $5.5M

Penn State provided three checks worth more than $3 million to Joe Paterno’s estate and family as described under Paterno’s employment contract. A family attorney stated that the Paternos did not waive their right sue the university by accepting the money, but the family did receive the checks for bonuses that covered the season, the bowl game, and Paterno’s entire career. Paterno’s family will also have use of a Beaver Stadium suit for twenty-five years and will receive $900,000 from television and radio revenue from last season.

The university will also pay Paterno’s widow, Sue Paterno, $1,000 a month for life and provide on-campus parking and access to the university’s hydrotherapy equipment. Additionally, Paterno’s estate will receive a final paycheck of $34,000, death benefits of $51,000 and $35,000 to be paid over five years, and the forgiveness of $350,000 in outstanding loans and debt Paterno owed to the university.The university stated the package was valued at over $5.5 million; however, the true value of the package is closer to $6.8 when various elements of the agreement are taken into consideration.

Though the family has stated this agreement is not a settlement, the family’s attorney did say the agreement was “a straightforward payment of moneys indisputably owed to the Paterno estate. The university had requested the family agree to a full release in return for the payments under the contract. That request was declined and no release was signed.”

See PSU Pays Paterno Estate $5.5M-Plus, Associated Press, Apr. 20, 2012.