Sandusky - a former Penn State football coach - was convicted in June of multiple charges over sexual abuse spanning a 15-year-period.
Diamond's 'Sweet Caroline' has long been played as part of a sing-along at Penn State football games, but insiders told The Altoona Mirror that school leaders became uncomfortable due to lyrics such as "reaching out, touching me, touching you".
Penn State officials have since confirmed that 'Sweet Caroline' has been pulled from game day music playlists. However, the school's spokesperson David La Torre said the lyrics played no role in their decision.
"The song has come up on the list in recent years because it happens to be played in so many other professional and collegiate venues and has no real origination here at Penn State," La Torre told ESPN.
Penn State was fined $60 million by the NCAA in July over allegations that several school officials attempted to hide Sandusky's actions.
Watch Penn State's 'Sweet Caroline' sing-along below: