There are two things wrong with "entire institution".
1. An institution is an abstract concept, it can't do anything without the people that make it up. It's the people within the institution that make the institution what it is, so the actions of an institution are therefore actions of people. Those people that make up part of the institution were reprimanded for their actions and new people were put in place of them who are decent people. It's ok to support the new Penn State, it's not ok to support the old Penn State, and this is coming from a lifelong Penn State fan.
2. It wasn't everybody in the institution, only some knew about it.
If you are a troll then you are doing a really good job because there are a lot of haters out there that say stuff like you are saying.