The institution didn't do anything.
Yeah well that's the understatement of the year, but I know what you mean by that sarcasm aside.
Well, there are actually 7 home games, if I am correct.
Each one drawing about 3 times the amount of the total population into town, effectively tripling the amount of revenue generated, not to mention the merchandise, etc sold throughout the year...
As it has been stated, State College was all farmland until PSU came along.
Hamstringing the entire community is not teaching the correct people the correct lesson.
Throwing out the baby with the bath water comes to mind, here.
I don't doubt the football games help the local economy, hotel rooms, taxi's, restaurants, etc during the 7 home games. It isn't the mainstay of the economy though, which is real estate and services for the 52,000 students and staff that are there for an education or teaching/research. I imagine the majority of Beaver stadium is filled by locals during the game though, with maybe 10=20% of the seats (10,000-20,000) being true out of towners bringing in outside revenue.
Yes it was all farmland until PSU came along (in 1855), but again the reason for it's existence was and is education, not football.
Penn State is culpable in the sense that they did not have policies in place that would have prevented, or rather, allowed this sort of inaction on the part of administrators and coaches.
Face it, the football program got so powerful and the university so dependent upon it, that some felt it was more important to preserve it than protect the innocent. Even worse is it wasn't just a one time lapse, but one allowed to fester creating even more victims.
As far as I'm concerned the football program should get a death sentence of a couple of years at least. Let the university get back to the basics of education and earn the privilege of having a football again sometime in the future.