Franklin signed a 10-year contract extension in November 2021 that would run through the 2031 season. Sources have told On3 that Penn State will not pay the contract in a lump sum but in monthly payments. Sources have also told On3 that Franklin’s contract includes a compensation clause that could reduce the termination if he accepts a new job.
Penn State and Franklin also did not negotiate a buyout to reduce the amount the Nittany Lions are responsible for paying, according to sources. Franklin earned $7.5 million through base salary, supplemental pay and an annual retention bonus. He also received a $1 million annual loan for a life insurance policy for the entire duration of the contract, which was included in his purchase.
His contract included incentives, including $350,000 for winning the Big Ten championship game, $400,000 for reaching the College Football Playoff and $800,000 for winning a national championship.
James Franklin arrived at Penn State in January 2014 and won the Big Ten championship in 2016, when the Nittany Lions went 10-2 and won Wisconsin for the title of the conference. They have struggled in recent years to win in the big moments against ranked teams. Franklin was 4-21 at Penn State against AP Top 10 opponents, including 1-18 against Big Ten Top 10 teams. He was 104-45 in his 12 seasons in Happy Valley.
Penn State entered the 2025 season with national championship expectations after reaching the College Football Playoff semifinals in 2024. But the Nittany Lions faltered and lost three straight games with losses to Oregon, UCLA and Northwest. Franklin became the first coach in the last 30 years to lose consecutive games as a favorite by at least 20 points, with losses to the Bruins and Wildcats.