Pegula

STATE COLLEGE — Before he said a word, Penn State president Graham Spanier offered a clue about the school's latest athletic endeavor by pulling a blue hockey sweater over his white dress shirt and tie.

Happy Valley will soon be home to major college hockey.

Ending years of speculation, university leaders on Friday announced they were upgrading the Penn State men's and women's club hockey teams to Division I status, starting in the 2012-13 season.

Penn State hockey fans can thank Terry and Kim Pegula, who donated $88 million — the largest private gift in Penn State history — to fund a new multipurpose arena and help upgrade the men's program. The athletic department will fund, or seek other private donations, for the women's program.

"So maybe someday in these hills of Pennsylvania, we're going to find a Pennsylvania (Sidney) Crosby," Terry Pegula said at a trustees meeting Friday morning, referring to the Pittsburgh Penguins' star. "Hopefully, he'll play hockey for Penn State, and I think that's awesome."

Pegula is the founder and former president of the energy company East Resources Inc., a major player in the state's burgeoning natural gas industry that was sold to Royal Dutch Shell PLC for $4.7 billion earlier this year.

The announcement culminates nearly four years of discussions between school representatives and Pegula, a Penn State graduate.

"This is a banner day in the history of our ... university, our athletic program, college hockey," athletic director Tim Curley said at a news conference.

Penn State had a men's varsity team from 1939 to 1946. The club team was started in 1971