Paterno family receives over $5.5 million from Penn State

On Thursday, Penn State University agreed to provide millions in payments and benefits to Joe Paterno’s family and estate. The late coach’s employment contract has set up the Paterno estate for life. The family has yet to sign their contract to sue.

According to sources, the Paterno family lawyer Wick Sollers issued a statement Thursday saying there has been no settlement, but rather, ”a straightforward payment of moneys indisputably owed to the Paterno estate. The university had requested that the family agree to a full release in return for the payments under the contract. That request was declined and no release was signed.”

A breakdown of the payments made by Penn State included: the use by Paterno’s family of a Beaver Stadium suit for 25 years, $900,000 from television and radio revenue from last season, a final pay check of $34,000, death benefit of $51,000, and$350,000 (payable over 5 years) under 1986 consulting agreement, the coach’s widow Sue, will receive $1,000 a month for life and provide her with on-campus parking and access to the university hydrotherapy equipment.

There are other kinks to be worked out financially, but the school said in a news release that the total package was “over $5.5 million.”

After former coach Jerry Sandusky was arrested, Joe Paterno announced he was going to retire at the end of the season.  He was then removed as coach by the trustees. Penn State honored the terms of Paterno’s contract as if he had retired at the end of the 2011 season.

The Hall of Fame coach spent six decades at Penn State. Of those years he spent 46 as the head coach, winning two championships standing as the face of the university.  He won 409 games, the most of anyone in college football history beating out Eddie Robinson.