Report: Penn State, James Franklin agreed to negotiated buyout of $9 million

Penn State will reportedly be paying a whole lot less than $49 million to not have James Franklin be its coach anymore. According to Brandon Marcello of CBS Sports, Franklin and Penn State negotiated his buyout down to $9 million. This is due to Franklin getting another job in the coaching world, where he is reportedly being hired by Virginia Tech.

Some money gets saved by Penn State, which is still conducting a coaching search at the moment. But Franklin still receives a nice chunk of change after being fired by the program. Additionally, On3’s Pete Nakos has since confirmed this news.

“Penn State and James Franklin recently negotiated his buyout down to $9 million, sources tell @CBSSports,” Marcello said via X. “His contract called for a buyout of $49 million to be paid through 2031, which could be offset by future earning at another job. He’s now headed to Virginia Tech.”

Franklin spent 11 full seasons with the Nittany Lions, getting fired during his 12th. His overall record sat at 104-45, bringing home one Big Ten title. Penn State finally broke through and made the College Football Playoff last season, playing in the semifinal game.

However, things took a turn for the worse after losing this year’s White Out game vs. Oregon. Penn State went on to lose three straight, including surprising results against Northwestern and UCLA. One of the preseason favorites to win the national championship, Penn State quickly began a new era for the program.

James Franklin taking over as Virginia Tech as head coach

Franklin himself will be entering a new era. A part of his contract stated he must search for a new job in the coaching world, eventually landing at Virginia Tech. The move became official on Monday evening.

“I’m honored and humbled to join the Hokie family,” Franklin said in a statement. “My vision is simple: to restore unmatched excellence, to build something that lasts, and to serve this University, the Commonwealth of Virginia and our amazing fan base with honor, integrity, and passion. I look forward to getting to work with our players, our staff, and the entire Virginia Tech community.”

Virginia Tech is looking to bring more consistency to the table, wanting to compete in the ACC moving forward. Franklin’s resume before the 2025 season brings exactly that — being able to build from the foundation up. Both sides are hoping the fit works out in the long term.