How Much Does Penn State Owe James Franklin amid Va Tech Contract, Buyout Negotiation?

Penn State is reportedly on the hook for far less money than initially thought with James Franklin.

Virginia Tech announced Monday it hired Franklin to be its next head coach after he was fired by Penn State.

Brandon Marcello of CBS Sports reported the Nittany Lions and Franklin negotiated his buyout to just $9 million after his contract with the Big Ten school called for a $49 million buyout that would have been paid through 2031. That contract also included a clause that said the buyout could be offset by future earnings at a different job, and he didn't waste much time landing another one.

Penn State fired him in October following a 3-3 start to the 2025 season that began with realistic national championship hopes and a loaded roster.

The Nittany Lions struggled throughout his tenure in marquee games against highly ranked opponents, but defeats to Northwestern and UCLA stood out. After all, Franklin typically won those contests against overmatched opponents but never took the next step against the nation's elite.

That he found a job so quickly is surely welcome news, at least financially, for Penn State.

After all, his $49 million buyout was the second-largest in college football history behind only the $76 million one that Jimbo Fisher had with Texas A&M. In the current era of college football with potential revenue sharing down the line as well as name, image and likeness opportunities, being on the hook for that much money while simultaneously searching for a new coach was less than ideal.

Now Penn State has a much lower buyout and can focus on finding its next head coach after moving on from Franklin.

While his tenure with the Nittany Lions ended in disappointment, he was 104-45 overall and reached the College Football Playoff semifinals just last season. However, he went 4-21 against top-10 opponents and was often a step behind conference rivals such as Ohio State and Michigan.

There aren't as many national powerhouses in the ACC to compete with as there was for Penn State in the Big Ten dealing with Ohio State, Michigan, Oregon, USC and others. Perhaps that will help him elevate the program to CFP contender status without having to worry about as many top-10 matchups.

And he will be doing so while owed much less money from Penn State.