Is refuting it less believable than silence? The scenario presents a dilemma.
If I'm being honest, then I think it's beyond foolish to think CJF would leave a great Penn State job for the revolving door that is USC.
There's the lure of glitz, glamor and a huge talent base, but there's the HUGE downside of a fickle and non-loyal AD, alumni base, etc.
USC is a program where going 11-2 annually (like he has frequently at Penn State) would get you fired after a few years. They'd start to have a wondering eye and flirt with someone else to "get them over the top" and win a Natty.