What Matt Rhule's Contract Extension at Nebraska Means for Penn State's Search

Rhule, a candidate for the Nittany Lions vacancy, signed a two-year extention with the Cornhuskers.

Nebraska Cornhuskers head coach Matt Rhule walks the sidelines during the game against the Maryland Terrapins at SECU Stadium. | Tommy Gilligan-Imagn Images

Penn State's coaching search evidently has helped two Big Ten coaches receive contract upgrades, Curt Cignetti at Indiana. And now, Matt Rhule at Nebraska.

Nebraska announced Thursday that it signed Rhule to a two-year extension trough the 2032 season. According to Nebraska, Rhule did not receive a base-salary raise, but the extension includes "salary escalators" for College Football Playoff appearances.

ESPN's Pete Thamel reported that the contract includes a $15 million buyout this year.

Sources: Nebraska coach Matt Rhule signed a two-year contract extension this morning, which will take him through the 2032 season. It includes a $15 million buyout this year that effectively eliminates him from any jobs in this coaching cycle. pic.twitter.com/k0oCne5SHH

— Pete Thamel (@PeteThamel) October 30, 2025

Four days after Penn State fired Franklin, Indiana announced a new eight-year, $92.8 million contract with Cignetti, who has the Hoosiers unbeaten and ranked No. 2. In his third season at Nebraska, Rhule has an 18-15 record entering the Cornhuskers' game vs. USC on Nov. 1. Nebraska is 6-2 this season.

The contracts ostensibly eliminated both Cignetti and Rhule from contention for the Penn State job, right? Well... In September 2019, Rhule signed an extension at Baylor through the 2027 season. That was two jobs ago. Less than four months later, Rhule became the head coach of the Carolina Panthers.

Which is to say that if Rhule's good friend, Penn State Athletic Director Pat Kraft, wants to hire him, this won't be a deterrent. Athletic directors don't fear buyouts when they're spending someone else's money.

Nevertheless, let's take a look at how Rhule's extension impacts Penn State's hiring process and timeline.

'We're really like brothers'

Penn State athletic director Pat Kraft talks with members of an alumni group outside of Beaver Stadium before a game vs. Michigan. | Dan Rainville / USA TODAY NETWORK via Imagn Images

After Kraft fired James Franklin on Oct. 12, job speculation immediately turned to Rhule, the former Penn State linebacker who has spoken lovingly of his alma mater while coaching at Temple, Baylor and Nebraska.

This summer, Rhule said he was "grateful" for what Franklin had done at Penn State, adding that Franklin helped make Penn State a "great job" in college football. Rhule's relationship with Kraft merely added to the expected fit.

Rhule was a sounding board and reference in 2022 when Kraft began pursuing the Penn State job. The two had worked together at Temple in the 2010s and were head coach/athletic director when the Owls defeated Penn State at Lincoln Financial Field in 2015.

Kraft long has considered Rhule one of the top coaches in college football. More than that, he has deep respect for Rhule. "My man Matt," Kraft said in 2022 when asked about his relationship with Rhule.

"We’re really like brothers. He really did help," Kraft said then. "We talked about it a lot. When [former Penn State Athletic Director] Sandy [Barbour] made her decision [to step down], Betsy [Kraft's wife] looked at me and she said, 'That’s the one, right?' because Matt and I talked about it.

"... Matt’s a good sounding board. When this process came to fruition in a very quick window, he was a wonderful sounding board. 'What am I walking into? I know what it looks like, but what am I walking into?' Bigger than Penn State, we talk about just how to run programs and how to do things and how to live this crazy life in athletics that we have. Matt’s a brother to me, and I’m proud of him and what he’s doing."

Kraft certainly pursued hiring his "brother" at Penn State, but things have changed. Rhule had been asked repeatedly since mid-October about the Penn State job and consistently toed the line of respecting hls alma mater why planting his feet in Lincoln.

"I love Penn State,” Rhule previously said before the extension was announced. "I mey my wife there, [it's] my alma mater, a fan since I was born. I think I probably had a Penn State shirt when I was born. I love Pat Kraft. ... I love it here [at Nebraska]. I want us to continue to take the steps needed for us to turn this place into a beast.”

Nebraska Cornhuskers head coach Matt Rhule walks along the sidelines during the second half against the Maryland Terrapins at SECU Stadium. | Tommy Gilligan-Imagn Images

What's next for the Penn State search?

Rhule's decision to stay at Nebraska doesn't materially change Penn State's search process. Kraft and Rhule knew each other's strengths and weaknesses and didn't need much interview time together. It was more about convincing Penn State's primary donors and stakeholders that Rhule was right for the job.

But from the beginning, Kraft has positioned his search as comprehensive, one that would consider a broad contingent of candidates. Among them: Texas A&M's Mike Elko and Missouri's Eli Drinkwitz. Footballscoop also reported that Penn State also has connected with Ohio State offensive coordinator Brian Hartline. Multiple other candidates are part of the process as well.

Penn State isn't rushing the hire, as Kraft said he wants to bring in a coach who can win the national championship. But a timeline exists. College football's early signing period, when Class of 2026 recruits can sign contracts, begins Dec. 2. Penn State would love to have a coach in place by then to repopulate it recruiting class, which understandably is looking elsewhere.

The College Football Playoff complicates that, particularly regarding coaches with contending teams. The next, absolute deadline is Jan. 2, when the transfer portal reopens for two weeks. Penn State's next coach most likely must be in place then to ensure that the Nittany Lions have a roster of players for the 2026 season.