Penn State is a fine academic institution, routinely noted as one of the top public universities in the country. It’s a big reason why the school name carries so much clout - the research, the academics, and the huge alumni network all combine to be one of the better names you can have on a diploma in America.
But for a lot of people, sports were a close #2 (if not #1) while they were at school. I know for me, the allure of Penn State football brought me to University Park, instead of Oakland or Villanova or Shippensburg.