There's an article today on ESPN reporting that Penn State football lost State Farm as a sponsor for the upcoming season. The same article claims GM hasn't finished their review, while Pepsi, PNC and Highmark Inc. have decided to stick with Penn State for the time being. The article also states that Penn State apparel sales are down from about $80m before the scandal, $60m since the scandal broke and an analyst is predicting a number as low as $45m for this upcoming year. Personally, I think it will be interesting to see who is advertising by the time the season rolls around.
Also, more importantly, Moody's Investor Service has put Penn State's Aa1 rating under review. This press release cites concerns over University governance, as well as "student demand and fundraising" issues. According to Bloomberg, investors have already begun penalizing Penn State by asking for additional basis points in exchange for buying PSU bonds. With over $1b in bonds, a credit rating downgrade would be very costly for Penn State.