I truly believe that they deserve the death penalty for this.
I know that none of the people that are culpable (Sandusky, Paterno, Curly, etc) are there anymore, but there has to be a punishment for this clear lack of institutional control. The football program in particular is culpable, not just the university. Punishing the entirety of the university with monetary discipline hurts the entirety of the student body, who aren't part of the football program. The punishment should lie primarily on the football program, and I expect the NCAA to do so.
If USC is going to get punished in the manner they did for Reggie Bush, then this deserves far more severe of a punishment. Not doing so sends a clear sign that the NCAA is not serious about policing their league.
While I don't argue the outcome...If it indeed occurs, I think the NCAA's justification for involvement is strained here.
Seems to me, in practice, "Institutional control" has always been limited in its application...it seems to be a catchall for creating an environment where NCAA violations are covered or allowed. NCAA violations all seem to tie back to some competitive fairness/advantage issue do they not? The PSU football program did not benefit from Sandusky's conduct, nor would any reasonable human being conclude it could have. So yea, I think lack of institutional control, say in Florida's case, Ohio States case, or USC's case translate to an advantage on the field. The criminal conduct mixed in helps to make the point of lack of control, but I think the basis of all things NCAA action are/have been tied to violations of their rules and fairness/advantage on the field...
Reaching beyond that basis seems to be uncharted waters for the NNCAA.
PSU may have experienced some benefit for the cover-up, but the lack of control itself did not help Penn State Football.
As to punishing PSU in its entirety vs the football program. If you get down to it...AD, VP, Pres...those are all university level positions...not Football. Hard to argue against a complete hammering of PSU...not just Football.
I think we'll see the NCAA do "something" because they opened their mouth...they can't sit back now...whatever that is will be unprecedented. Guessing PSU won't get SMU'd. I think civil suits and criminal investigations/prosecutions of the conspirators will be about all that happens after that...don't see PSU the institution in harms way, other than their tarnished rep.