"The entire university is clearly guilty. Most of the world recognizes this."
I must have missed the day that you were elected to speak for the world.
Putin, you are being just as reactionary as the kids who rioted after Paterno was fired. In your rush to burn it all down, you're forgetting about the most important thing that should come of this...helping abused kids! What will shutting down the uni, or the football team, do to that end? Nothing.
PSU, in part because of their football team, is in position to do a great deal of good. If they take money made through football to help charities set up safe-havens and consoling for abused kids, provide scholarships so they can go to college, and do all they can to help kids move past being victims to being survivors, wouldn't that be better than not only putting thousands of people out of jobs who had nothing to do with the situation, but providing nothing to those they ignored to get here in the first place? It wouldn't make up for what has already happened, but it would be the right thing to do moving forward.
All that being said, if PSU uses all their money to fight the abused kid's lawsuits, then I'm in agreement with you.