GM considers dropping Penn State sponsorship in wake of Sandusky scandal

By Amir Iliaifar July 27, 2012

GM considers dropping Penn State sponsorship in wake of Sandusky scandall — Image used with permission by copyright holder

Penn State is set to undergo even more heartache as Automotive News reports that General Motors is currently evaluating whether or not it will discontinue its sponsorship of the Big Ten university in lieu of the child sex abuse scandal that has engulfed the school.

According to GM spokesman Tom Henderson the automaker has yet to make a decision either way, but would continue to undergo evaluation. Specific details regarding GM’s sponsorship with Penn State have not been made available, nor would Henderson elaborate further, but all signs point to a considerable amount of money at stake.

Currently, the American automaker contributes to various departments at the university including the Nittany Lions athletic program. That funding could very well be in jeopardy as GM could follow in the footsteps of other sponsors such as State Farm by limiting or removing support altogether.

The Associated Press reports the insurance company has been considering ending its funding of the school since former assistant coach Jerry Sandusky was arrested on child-sex abuse charges in November. That decision seems to have finally come through though as State Farm said earlier in the week that it would no longer air advertisements during home football games.

“We will not directly support Penn State football this year,” State Farm spokesman Dave Phillips told the AP. “We just feel it was the best decision.”

In addition to the loss, and potential loss, of its sponsors, the NCAA has imposed an unprecedented level of sanctions against the university, slapping it with $60 million in fines, issuing a four-year bowl ban, and drastically reducing its available scholarships after a report by former FBI Director Louis Freeh concluded that officials and administrators, including football coach Joe Parterno, covered-up allegations of child sex-abuse levied against former assistant football coach Jerry Sandusky.

Sandusky, who was found guilty on 45 counts of child-sex abuse, has yet to be sentenced.

Former Digital Trends Contributor

Associate Automotive Section Editor for Digital Trends, Amir Iliaifar covers the ever increasing cross-section between tech…

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