How much is James Franklin's contract buyout? It will cost Penn State nearly $50 million to fire its coach

On the night of September 27, the Penn State Nittany Lions appeared to be cruising — unbeaten, ranked No. 3 in the nation, and up by two touchdowns in the fourth quarter against then-No. 6 Oregon on their home turf.

But in just over two weeks, everything unraveled. Fifteen days after that heart-breaking overtime collapse, Penn State has plummeted to 3-3 following back-to-back defeats in games where they were favored by more than 20 points. The stunning skid has now claimed a major casualty — the program has dismissed head coach James Franklin, despite the hefty financial commitment still tied to his contract.

The decision to part ways with James Franklin sent shockwaves through the college football world, even by its unpredictable standards. The move is remarkable not only because of the enormous payout tied to his contract but also due to Penn State’s recent track record of success under his leadership.

The Nittany Lions kicked off the 2025 campaign with a 3-0 start and climbed to No. 3 in the nation before suffering a crushing 30-24 overtime defeat at home to then-No. 6 Oregon. Things quickly unraveled from there, as they fell 42-37 to a previously winless UCLA squad before hitting rock bottom with a 22-21 home loss to Northwestern, which ultimately sealed Franklin’s fate.

Just a year ago, Franklin had guided Penn State to a 13-3 record and a spot in the College Football Playoff semifinal, narrowly losing 27-24 to eventual runner-up Notre Dame in the Orange Bowl. His prior success, including three 10-win seasons and a Big Ten title in 2016, earned him a 10-year extension in 2021 that was supposed to secure his future through 2031.

Instead, the program will now fork over a massive buyout to ensure Franklin is no longer calling the shots in Happy Valley.

Although James Franklin is no longer patrolling the sidelines for Penn State, the 53-year-old won’t be walking away empty-handed anytime soon.

Per multiple reports, Penn State will be on the hook for a staggering buyout of just over $49 million, making it the second-largest in college football history, trailing only the jaw-dropping $76 million Texas A&M paid Jimbo Fisher after parting ways with him in 2023.

Franklin inked a 10-year extension back in November 2021, which was meant to keep him in Happy Valley through the 2031 season. That deal officially took effect in January 2022 and came with a hefty annual salary of roughly $8.5 million.

Johnny McGonigal of PennLive floated the idea that Indiana Hoosiers head coach Curt Cignetti could be the man to succeed James Franklin at Penn State.

Cignetti has pulled off an impressive transformation in Bloomington, guiding Indiana to unexpected success that mirrors Franklin’s College Football Playoff appearances — highlighted by a statement victory over Oregon. At 64 years old, he’s a seasoned leader with a proven record of winning, and with Penn State’s deep resources, he could elevate the program even further.

Another intriguing possibility is Matt Rhule, a former Penn State walk-on and close friend of athletic director Patrick Kraft. Now steering Nebraska’s resurgence, Rhule has already proven his coaching chops with standout stints at Temple and Baylor. The allure of returning to his alma mater could tempt him, even if he’s currently content in Lincoln.

Also in the mix is Matt Campbell, who has long been rumored for major job openings after turning Iowa State into a consistent Big 12 contender. Known for his offensive acumen and strong regional connections, Campbell could be a natural fit should he decide it’s time to take the next leap in his coaching career.