Disagree it's "completely false." Bit of semantics here, perhaps, but I see what the author is saying.
Avoiding a competitive disadvantage (harm to recruiting, revenues etc.) isn't the same as gaining a competitive advantage, unless you're talking about an advantage vis-a-vis all those other schools that have predatory pedophiles in their midst and turn them in.
All schools face ethical dilemmas when they're dealing with a group of athletes and coaches who have been patted on the back for their entire lives because they possess a rare and socially desired skill. Misbehavior of various sorts arises at every program. The program has a responsibility to bring criminal behavior to light rather than use the program to sweep it under the rug.
If the NCAA had done nothing, the cold, disgusting reality would have been that JoePa and others at Penn State made the right decision in 1998 and 2001 vis a vis Sandusky. Not morally right, mind you, but economically and competitively. Since 1998, Penn State has brought in more than a billion dollars (directly and indirectly) from CFB. They'd gotten to replace Paterno (done), continue to field a competitive football team (indeed, their 2013 recruiting had been rather good, especially considering the circumstances), and continue to rake in donations (sky high this year). AND THEY GOT CAUGHT. In 1998 and 2001, there was a relevant branch on the decision tree that had the story never coming out.
Money and reputation lead to competitive advantages on the field of play. By sparing the program fallout, they put themselves at an advantage over others who have self-reported all sorts of transgressions by those affiliated with their programs. Your statement implies that there probably aren't a ton of other programs don't have a child predator in their midsts specifically, and that's correct. That's also kind of the point; the next time an athletic program had information that could damage them in some way if it came out, though it was morally and legally the right thing to do, well, without NCAA sanctions against PSU, the correct decision tree response would be, "Hell, Penn State harbored a sexual predator and got through it relatively unscathed- why shouldn't we sweep this sexual assault by our star defensive tackle on a drunk coed under the rug?"