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Or do you think it more likely that Joe just refused to believe Sandusky was capable of that and lived in denial?
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Another poster said it pretty well on another thread. I think he knowingly lived in denial. As long as he didn't have hard proof, he could just try not to think about it and hoped it came to nothing. That worked until his own assistant coach came to him, and there would be repercussions if he didn't pass it along up the chain of command.
The linked Deadspin article is brutal and contains the actual Order from the suit involving Penn St. and its Insurance Company.
http://deadspin.com/court-opinion-reveals-joe-paterno-reportedly-knew-of-je-1775014993There is evidence that Penn St. football coaches knew about a 1976, 1987, two 1988s, and a 1998 incident (where there was actually a police investigation into Jerry showering naked with a kid, and a "Joe" at Penn St. was avid to be kept in the loop according to the emails in the Freeh report), all before the 2001 incident which McQueary testified he told Paterno he witnessed, and Paterno confirmed.
The early dates (prior to 1998) have come to light from sealed, sworn depositions from disparate deponents in the lawsuit involving Penn State and its insurance company. The Court's Order in that suit largely sides with the Insurance Company and says that Penn St. is going to have to cover its own dime for policies in effect from 1992-1999.
If Penn St. paid out settlements to claimants from that time period as hush money, and to make the bad publicity go away, contesting the insurance company was a huge mistake. Now not only are they still on the hook for those monies, but they've elicited testimony that's been referenced in a Judge's Order that shows incidents and knowledge way beyond the 1998 previous time frame.