I think that people hoping for PSU to get the death penalty are going to be sorely disappointed. I do have some, not much, but some, sympathy to the argument that the loss in revenue would do crippling damage to the community as well as to other athletic programs. My views are also based, in part, upon the fact that teams with contracts to play PSU will be financially harmed.
If I had my way, PSU's football program would be hit with a total loss of scholarships. Allow thehe current football players to transfer, and, if they can't find a school to take them, then PSU will be forced to honor their scholarship though they will be unable to compete on the team, at least for a year or two.
2013 - PSU can award no scholarships
2014 - PSU can award no scholarships
2015 - PSU can hand out 5 football scholarships
2016 - PSU can hand out 10 football scholarships
2017 - PSU can hand out 15 football scholarships
2018 - PSU can hand out 20 football scholarships
2019-2024 - add back 1 scholarship each year
You can play around with that schedule a bit, but I think that's appropriate. It would devastate the on-the-field product, but if the fans wanted to continue going to the games, and funding the other sports, then more power to them.