James Franklin’s unexpected mid-season dismissal from Penn State, laden with a staggering $49 million buyout, has sent shockwaves through the Big Ten and ignited crucial conversations about the financial sustainability of fully guaranteed coaching contracts in the evolving landscape of college football.
The college football world was taken by surprise with the mid-season firing of Penn State’s head coach, James Franklin. What initially seemed like a stable, if not always elite, tenure ended abruptly, leaving players in disbelief and sparking a widespread debate about the nature of coaching contracts and institutional financial responsibility. The dismissal came after a rocky 3-3 start to the 2025 season, a record that included consecutive losses to unranked opponents.
The Shocking Mid-Season Exit
Franklin’s firing occurred in Week 7, making him one of several prominent coaches to lose their jobs early in the season, notably after UCLA’s DeShaun Foster. Penn State, a team once ranked in the preseason top two, plummeted to a 3-3 record, their worst start since 1950. The final straw came with back-to-back losses to big underdogs, UCLA and Northwestern. These defeats proved costly, as Penn State now owes Franklin a staggering $49 million buyout, marking the second-largest severance payout in college football history, as reported by USA TODAY Sports.
The decision sent shockwaves through the team. Center and captain Nick Dawkins expressed “shocked” and “disbelief,” stating, “for us as players, it’s an overwhelming sense of guilt. We got our coach fired. We didn’t play well enough.” Linebacker Dominic DeLuca echoed the sentiment, describing it as “a hard time. Everyone’s emotional. Everyone’s surprised.” Wide receiver Devonte Ross spoke of Franklin’s honesty and genuine care for his players. These reactions highlight the deep emotional toll the decision took on the athletes Franklin recruited and coached.
The Costly Conundrum of Guaranteed Contracts
The colossal buyout for Franklin shines a spotlight on the controversial practice of fully guaranteed coaching contracts. Sports lawyer Martin Greenberg described this phenomenon as “negotiation lunacy,” particularly given the rising costs and potential revenue sharing in college sports. As Greenberg articulated, “Essentially, a coach could be owed $77 million, get fired not for cause, and the next day double dip and get another (lucrative) contract.”
Franklin’s situation mirrors that of Jimbo Fisher, who received the largest buyout in college football history at over $76 million from Texas A&M. Both coaches shared Jimmy Sexton as their agent, and both secured fully guaranteed contracts that did not include a duty to mitigate damages. This means coaches can collect their full severance while simultaneously taking another job, a financial burden that can cripple university athletic departments. Franklin’s 10-year, fully guaranteed extension in 2021 was particularly intriguing, as it was awarded after two mediocre seasons (4-5 in 2020 and 7-6 in 2021) under then-athletic director Sandy Barbour. The details surrounding such contracts, particularly the lack of mitigation clauses, raise serious questions about long-term financial stability for schools.
For more detailed insights into the complexities of these agreements, the Marquette Sports Law program offers extensive analysis on mitigation clauses in college football contracts.
Performance Pressures and Financial Fallout
While Franklin amassed a respectable 104-45 record over 11-plus seasons, including one conference title and one playoff appearance, his tenure was plagued by an inability to consistently defeat top-tier opponents. His 4-21 record against top-10 ranked teams became a significant point of contention for a program with championship aspirations. Comparisons were drawn to former LSU coach Les Miles, whose early success eventually gave way to late-career struggles, leading to his eventual dismissal.
The financial implications for Penn State extend beyond Franklin’s buyout. The university is in the midst of a multi-year, $700 million stadium renovation. This massive investment, combined with the buyout, leaves the Nittany Lions in a financially inflexible position. This financial strain could reportedly push Penn State towards agreeing to the Big Ten’s proposed $2.4 billion deal with the UC fund. This deal aims to inject a significant equity capital infusion into the conference by creating “Big Ten Enterprises” to manage media rights and sponsorships, offering immediate financial relief to member schools in exchange for a stake.
Discussions by college football insiders like Ross Dellenger of Yahoo Sports and Andy Staples of On3 have highlighted Penn State’s precarious financial state, suggesting that the university might not be able to afford its extensive investments in coaching staff, roster, and stadium without external financial support. The Big Ten deal, while offering stability, has also drawn skepticism from larger programs like Michigan and Ohio State, and even political scrutiny regarding schools’ tax-exempt status.
Looking Ahead: A New Era for Penn State
With Terry Smith, the longtime cornerbacks coach, appointed as interim head coach, the Nittany Lions must now navigate the remainder of their season. The players have rallied behind Smith, emphasizing their commitment to upholding the legacy Franklin built. However, the path forward is uncertain, compounded by the season-ending injury to quarterback Drew Allar.
The search for a new head coach will undoubtedly be intense, with university leadership signaling a clear commitment to finding a candidate who can elevate the program to perennial national contender status. The Franklin era, while marked by consistent performance, ultimately fell short of the ultimate championship goals. His departure, however, forces a broader examination of how universities manage coaching talent and finances in an increasingly commercialized and competitive college football landscape.
Beyond Penn State: Playoff Implications
The seismic shifts in the Big Ten also intertwine with the broader College Football Playoff picture. Oregon’s unexpected 30-20 loss at home to Indiana, a team Penn State had beaten earlier in the season, complicates the Ducks’ playoff aspirations. With their “best win” coming against a now-struggling Penn State, Oregon may need to win out their remaining six games, including a challenging matchup against USC on November 22, to secure a playoff spot and leave no doubt for the committee.
Conversely, the Indiana Hoosiers, looking “legit,” now find themselves in a surprising position. With their next six games against unranked opponents, an undefeated run into the Big Ten Championship game could set them up for a potential upset of Ohio State and a shocking No. 1 playoff seed. As many pundits have noted, in the unpredictable world of college football, stranger things have indeed happened.
