How James Franklin's Contract, Buyout Differed From Jimbo Fisher's

According to Franklin's Penn State contract, obtained by Front Office Sports, offset clauses could mitigate the nearly $50 million buyout.

Penn State Nittany Lions head coach James Franklin stands on the field during a warmup prior to the game against the Northwestern Wildcats at Beaver Stadium. | Matthew O'Haren-Imagn Images

James Franklin's Penn State buyout is drawing comparisons to that of former Texas A&M coach Jimbo Fisher, whose 2023 firing will cost the university about $76 million. But Franklin's 2021 contract reportedly included language that could substantially mitigate what Penn State pays him over the next six years.

According to the contract, obtained by Front Office Sports, Penn State requires Franklin to make a "good-faith" effort to pursue another job that could lower the total cost of his buyout.

Franklin signed a 10-year contract in 2021 that guaranteed him $80 million and included an annual buyout of $8 million if Penn State fired him for performance reasons. Franklin's current buyout is $48 million plus his remaining 2025 salary. Penn State fired Franklin on Sunday with six games remaining in the season.

FOS reporter Amanda Christovich, who obtained a copy of that 2021 contract, reported that the 10-year deal Franklin signed in 2021 included several key clauses that could mitigate the buyout of the deal's remaining six years.

Franklin's 2021 contract said that Penn State's buyout payments would be "offset" by any salary he makes at his next job in football. Further, according to FOS, the contract stated that Franklin must "diligently search" for another position "appropriate for his skill set" and make "good faith efforts to obtain the maximum reasonable salary" in his next position.

As a result, Penn State would not be liable for the entire buyout if Franklin obtains another job in coaching, broadcasting or a related field. That's much different than the famous buyout of about $76 million that Texas A&M is paying former head coach Jimbo Fisher after firing him in 2023.

According to Fisher's contract, obtained by the Texas Tribune, Texas A&M had no mitigation language and agreed to pay Fisher the contract's full amount if it fired him without cause.

"Coach will not have a duty to mitigate University's damages if this Agreement is terminated by University without Cause," the contract said. "Furthermore, University will not be entitled to any offset whatsoever in the event that Coach secures any subsequent employment."

$75 MILLION to move on from James Franklin?! 😳
⁰Urban calls it an overreaction… and Mark says don’t forget what Coach Franklin built. pic.twitter.com/NrZ3CWM0kI

— The Triple Option (@3xOptionShow) October 14, 2025

What we know, don't know about James Franklin's contract

Penn State Nittany Lions head coach James Franklin stands on the field following the game against the Northwestern Wildcats at Beaver Stadium. | Matthew O'Haren-Imagn Images

Though FOS obtained Franklin's 2021 contract, it's unclear whether that language was adjusted in 2024, when Penn State amended the deal. Specifically, Penn State "revised the performance incentives" in Franklin's contract to reflect the College Football Playoff's expansion from four to 12 teams.

Franklin received performance bonuses, up to $1 million annually, based on the team's record and milestones, such as winning a Big Ten title or national championship. However, Penn State does not publicly release coaching contracts, so it's unknown whether the university changed other components of Franklin's 2021 deal.

Penn State did release the financial term sheet of Franklin's 10-year contract, which began Jan. 1, 2022. According to the term sheet:

• Penn State guaranteed Franklin $8 million annually in salary, including a $1 million life insurance loan. Franklin also received a $500,000 retention bonus every Dec. 31 he was still employed. Thus, Franklin's base salary for 2022-24 was $8.5 million. His base salary for 2025 is $8 million.

• If Penn State fired Franklin for performance reasons, the university would owe him $8 million per the number of years remaining on the contract. Franklin had six years left following the 2025 season.

• The performance incentives included $800,000 for winning the national championship, $350,000 for winning the Big Ten title and $150,000 for being named national coach of the year.

• Franklin received perks such as a $10,000 annual allowance for a car and up to 55 hours per year of private-plane usage.

Penn State Athletic Director Pat Kraft did not discuss the buyout beyond saying that the athletic department will absorb its costs.