Paterno Won Sweeter Deal Even as Scandal
In January 2011, Joe Paterno learned prosecutors were investigating his longtime assistant coach Jerry Sandusky for sexually assaulting young boys. Soon, Mr. Paterno had testified before a grand jury, and the rough outlines of what would become a giant scandal had been published in a local newspaper.
Enlarge This Image
Matt Rourke/Associated Press
The former coach Joe Paterno, with his son Scott Paterno, left, being greeted by supporters at his home in November 2011. His firing led to an angry backlash against Penn State?s trustees.
Multimedia
Interactive Feature
Timeline: The Penn State Scandal
Interactive Feature
The Once-King of Penn State
Document: The Freeh Report
Related
Penn State?s Board Takes First Step in the Wake of a Blistering Report (July 14, 2012)
Abuse Scandal Inquiry Damns Paterno and Penn State (July 13, 2012)
Findings Stun Even Paterno?s Ardent Supporters (July 13, 2012)
In Report, Failures Throughout Penn State (July 13, 2012)
The Quad: At Paterno Statue, Support and Shock (July 12, 2012)
Penn State Investigation Adds to Freeh?s Extensive R?sum? (July 13, 2012)
The Quad
The Quad Blog Logo
Interviews, insight and analysis from The Times on the competition and culture of college football.
Go to The Quad Blog
Division I-A
This Week's Games
A.P. and Coaches' Polls
Scores: Top 25 | All Div. I-A
Conference Standings
All Div. I-A Teams
Division I-AA
Scores | Teams | Polls
That same month, Mr. Paterno, the football coach at Penn State, began negotiating with his superiors to amend his contract, with the timing something of a surprise because the contract was not set to expire until the end of 2012, according to university documents and people with knowledge of the discussions. By August, Mr. Paterno and the university?s president, both of whom were by then embroiled in the Sandusky investigation, had reached an agreement.
Mr. Paterno was to be paid $3 million at the end of the 2011 season if he agreed it would be his last. Interest-free loans totaling $350,000 that the university had made to Mr. Paterno over the years would be forgiven as part of the retirement package. He would also have the use of the university?s private plane and a luxury box at Beaver Stadium for him and his family to use over the next 25 years.
The university?s full board of trustees was kept in the dark about the arrangement until November, when Mr. Sandusky was arrested and the contract arrangements, along with so much else at Penn State, were upended. Mr. Paterno was fired, two of the university?s top officials were indicted in connection with the scandal, and the trustees, who held Mr. Paterno?s financial fate in their hands, came under verbal assault from the coach?s angry supporters.
Board members who raised questions about whether the university ought to go forward with the payments were quickly shut down, according to two people with direct knowledge of the negotiations.
In the end, the board of trustees ? bombarded with hate mail and threatened with a defamation lawsuit by Mr. Paterno?s family ? gave the family virtually everything it wanted, with a package worth roughly $5.5 million. Documents show that the board even tossed in some extras that the family demanded, like the use of specialized hydrotherapy massage equipment for Mr. Paterno?s wife at the university?s Lasch Building, where Mr. Sandusky had molested a number of his victims.
The details of Mr. Paterno and his family?s fight for money seem to deepen one of the lasting truths of the Sandusky scandal: the significant power that Mr. Paterno exerted on the state institution, its officials, its alumni and its purse strings.
Since Mr. Paterno?s death in January, Mr. Paterno?s family, lawyers and publicists have mounted an aggressive campaign to protect his legacy. The family and its lawyers have hammered the university?s board of trustees, accusing members of attempting to deflect blame onto a dying Mr. Paterno. This week, they angrily disputed the conclusions of an independent investigation that asserted Mr. Paterno and other top university officials protected a serial predator in order to ?avoid the consequences of bad publicity? for the university, its football program and its coach?s reputation.
On Friday, Wick Sollers, a lawyer for Mr. Paterno and his family, said that it was Penn State that last summer proposed the lucrative retirement package, and that many of the aspects of the proposal ? use of the plane, the luxury box ? had existed in prior contracts.
Information about the salary paid to Mr. Paterno, one of the longest serving and most successful college football coaches in history, had for many years been hard to come by. In recent years, though, it became fairly common knowledge that he earned about $1 million annually, not counting his television deals and his contracts with shoe and apparel companies.
But speculation about just how long he was going to remain the well-compensated coach of Penn State had been going on for a decade or more. Mr. Paterno survived an attempt to force him into retirement in 2004, and before the Sandusky revelations, his most recent deal ran through the end of 2012.