Does "institutional control" mean that you control, and are responsible for, every person within the program and their acts/decisions? If so, I dare say no one has institutional control. Urban and Gene Smith had LOIC with Tracey Sprinkle. They should have been staking out the Grown and Sexy on July 4. I am being ridiculous to demonstrate how ridiculous the concept is.
My understanding is that institutional control means that the rules are explained, some mechanisms are set in place to prevent common violations, and when a problem does occur, it is honestly reported and dealt with. Obviously, the Penn State football coach failed to do what he should have done, and the 2 AD guys, along with Spainier, failed to deal with the problem honestly. So, a clear example of LOIC.
But where I get hung up is how you punish/correct a LOIC. Paterno was fired, as were Curley, Schultz, and Spanier, and the latter 3 are facing prosecution. That LOIC seems to have brought very severe penalties to those responsible PRIOR TO, AND WITHOUT, ANY NCAA INVOLVEMENT. But then we also have this idea that the program had become so important that it created the context where a child rapist/pedophile's crimes were kept quiet. Yeah, I want that punished too so there is a bowl ban, loss of scholarships, and a huge fine. 60M fine seems to have a sufficient ouch factor. A 4 year ban and making PSU an FCS school is where we get into punishing players and coaches - who have no connection to the misdeeds, and had no hand in creating the culture in which the misdeeds occured. That's what I have a problem with because it is unfair on it's face (just as unfair as Ohio State taking the field with 3 less guys this year because of 2010-11 violations), and it isn't punishing anyone who was responsible for the LOIC or context it occured in - so how can it be corrective or helpful? It makes no sense.
I found the students' chanting of Paterno's name after the announcement of dropped sanctions in poor taste, and indicative that this particular group still doesn't get it. But do we want to suggest that the NCAA start regulating and sanctioning the thoughts and attitudes of fans? God help us if they start that nonsense.