Michigan State $500M Larry Nassar settlement: Who will pay?

By NewsFOXBusiness

Michigan State to pay $500M to Larry Nassar victims

Michigan State University will pay $500 million to the gymnasts sexually abused by the USA Gymnastic national team doctor Larry Nassar. FBN’s Stuart Varney with more.

Michigan State University students will help pay a $500 million settlement for victims of Larry Nassar, a former professor and sports doctor who sexually abused hundreds of young girls. John Engler, interim president, said costs will be borne through a combination of tuition and state aid, as the Detroit Free Press reported. Yet state lawmakers have expressed concerns over allowing the university to use state aid.

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The university hadn’t returned a request for comment from FOX Business at the time of publication.

During its 2016-2017 school year, MSU raked in $859 million in tuition, comprising 29% share of its total revenue, according to its annual financial statement. State and capital appropriations were valued at $338 million. The university’s financial assets were valued at $6.1 billion, with a net position of $3.9 billion, as of June 30, 2017.

The university also has an endowment –used to cover scholarships, professor support and “other annual university expenses” – valued at $2.7 billion as of June 30, 2017.

The settlement announced on Wednesday includes $425 million set aside for current claimants and $75 million to protect against future claimants. The university faces claims from at least 300 victims.

Nassar, who admitted to sexually assaulting the young girls, received a prison sentence exceeding 100 years.