James Franklin buyout: Penn State emphatically denies rumors that Adidas is paying to fire coach

As the dust is still settling following the announcement that Penn State had fired coach James Franklin, the question has been posed as to how the school will afford his massive buyout. According to On3’s Pete Nakos, the Nittany Lions owe Franklin $48.6 million, the second-largest buyout amount in college football history.

Reports emerged on social media that Adidas, which is set to enter a partnership with Penn State in 2026, was the driving force behind Franklin’s firing. The report also stated that Adidas had agreed to pay “most or all” of the buyout.

Front Office Sports reached out to Adidas for comment, which deferred to Penn State. A university spokeperson released a statement denying Adidas’ involvement in the decision to fire Franklin or fund his buyout.

“The report is patently false,” the spokesperson told FOS. “This decision was made solely by the Penn State administration. Adidas is not helping to pay the buyout for Coach Franklin.”

Franklin was fired Sunday coming off of a 22-21 loss against Northwestern in Week 7. It marked the third straight loss for the Nittany Lions after they also fell against Oregon and UCLA in the two weeks prior.

Franklin was in his 12th season at Penn State, having taken the team to the College Football Playoff semifinals last year. He compiled a 104-45 overall record but developed a reputation for struggling in big matchup, as he was just 4-21 against top 10 opponents.

Penn State athletic director Pat Kraft spoke about the firing publicly for the first time in a Monday press conference. He was tight-lipped on exactly how the school would come up with the money for the buyout, but did say that it was the burden of the athletic department to figure out.

“I’m not going to get into the financials. What I will tell you about the buyout … this is an athletics issue, this is not the institution’s issue,” Kraft said. “We in athletics are covering all the costs.”

Franklin signed a 10-year contract extension in November 2021 that was set to run through the 2031 season. Sources have told On3 that Penn State will not pay out the contract in a lump sum but in monthly payments. Sources have also told On3 that Franklin’s contract includes an offset clause that could lower the buyout if he takes a new job.

The Nittany Lions will have to find the funds somehow, but it appears the details are still being worked out. At least one thing we know is that the reports of Adidas covering most of the bill have been denied.