I hadn't considered the financial angle. The engineering school that I attended eventually went bankrupt. It was accredited right up until the end. Given Pennsylvania State Universities endowments, I don't think that this is a financial problem that they can't weather. In fact the way the fines are being levied, I'm not sure that the Athletic Department is even going to be seriously hurt.
The problem I see is that with this threat hanging over the University, I would think that applications will take a nosedive and with them the revenue stream.
If you were in high school would you apply to a school which my lose its accreditation while you’re still matriculating?
I see this as a much more serious problem than the NCAA fines.