In one of college football’s most stunning coaching casualties of 2025, Penn State fired head coach James Franklin on October 12, bringing an abrupt end to his 12-year tenure with the Nittany Lions. The dismissal came with a historic price tag: a $49.7 million buyout, the second-highest in college football history behind only Jimbo Fisher’s $76 million exit from Texas A&M.
The Unthinkable Collapse
Penn State entered the 2025 season ranked No. 2 in the preseason AP poll with legitimate College Football Playoff aspirations. Drew Allar was returning as one of the nation’s most experienced quarterbacks, Nick Singleton and Kaytron Allen formed college football’s premier running back duo, and the defense featured elite talent across the board.
Just six games later, Franklin was out of a job.
The breaking point came after a humiliating 22-21 home loss to Northwestern on October 11, a game where Penn State was favored by more than three touchdowns. That defeat marked the Nittany Lions’ third consecutive loss and dropped them to 3-3 overall and 0-3 in Big Ten play.
Even more damaging was the historical context: Penn State became the first FBS team since 1978 to lose back-to-back games as favorites of at least 20 points, following their shocking defeat at previously winless UCLA the week before.
The Three Losses That Sealed Franklin’s Fate
1. Oregon (Sept 27): 30-24 (2OT)
While this was a competitive double-overtime loss to No. 6 Oregon at home, it began the nightmare stretch that would define Penn State’s season.
2. UCLA (Oct 4): 42-37
The true turning point. UCLA entered the game 0-4. Penn State was favored by more than 20 points. The Bruins got their first win of the season in front of 84,000 fans at the Rose Bowl, exposing fundamental problems with the Nittany Lions.
3. Northwestern (Oct 11): 22-21
The death blow. Another 20+ point favorite loss at home in front of 111,015 fans. Drew Allar suffered a season-ending leg injury in the closing minutes, simultaneously ending Penn State’s slim playoff hopes and Franklin’s tenure.
The Numbers That Tell the Story
Franklin’s Record Against Top-10 Teams: 4-21
This statistic became the focal point of criticism throughout Franklin’s tenure. While he consistently built 10-win regular seasons and recruited at an elite level, Penn State could never break through against the sport’s best teams.
The 2021 Contract Extension
In 2021, Penn State gave Franklin a massive 10-year, $85 million contract extension running through 2031. At approximately $8 million annually, it reflected the university’s commitment to Franklin’s vision.
That contract also included one of college football’s largest buyout clauses, which Penn State is now obligated to pay in full: $49.7 million.
What Went Wrong in 2025?
Multiple factors contributed to Penn State’s collapse:
- Offensive Line Struggles: Despite returning starters, the O-line couldn’t protect Allar or create consistent running lanes
- Big Game Failures: The inability to win games as heavy favorites revealed deeper issues
- Defensive Regression: After ranking among the nation’s best in recent years, the defense allowed critical points at crucial moments
- Quarterback Injury: Allar’s season-ending injury against Northwestern eliminated any chance of salvaging the season
- Loss of Team Confidence: Three consecutive defeats created a psychological crisis
Franklin’s Legacy: Success Without Championships
Despite the disappointing end, Franklin’s 12-year tenure included significant accomplishments:
- Overall Record: 104-51 (before 2025 season)
- Three Big Ten Championship Game Appearances (2016, 2022, 2023)
- Consistent 10-Win Seasons: Seven times in 11 full seasons
- Elite Recruiting: Multiple top-10 recruiting classes
- Academic Excellence: Team consistently ranked among leaders in graduation rates
Yet Franklin never won a Big Ten championship or reached the College Football Playoff, and his 4-21 record against top-10 opponents became impossible to ignore.
The $49.7 Million Question
Penn State’s decision to pay nearly $50 million to fire Franklin reveals the program’s championship-or-bust mentality. Athletic Director Pat Kraft made it clear that recent struggles went “far beyond” the three-game losing streak.
The buyout represents:
- 5.8 years of Franklin’s remaining salary
- The university’s willingness to reset despite massive financial cost
- A statement that expectations at Penn State extend beyond 10-win seasons
Terry Smith Takes Over
Associate head coach and cornerbacks coach Terry Smith, a former Penn State wide receiver (1987-1991), was named interim head coach. Smith faces the unenviable task of stabilizing a program in crisis while coaching a team that’s lost four consecutive games and is starting a redshirt freshman quarterback in Ethan Grunkemeyer.
The Search Ahead
Vice President for Intercollegiate Athletics Pat Kraft announced a national search for Penn State’s next head coach. Candidates will need to:
- Demonstrate ability to win big games consistently
- Maintain elite recruiting standards
- Develop championship-caliber quarterbacks
- Build on Franklin’s foundation while correcting his shortcomings
A Cautionary Tale
James Franklin’s dismissal serves as a reminder that in modern college football, sustained success isn’t enough. Penn State wanted championships, and after 12 years without one, they were willing to pay $49.7 million to find a coach who can deliver.
The question now: Was the problem Franklin, or is Penn State’s championship drought part of a larger challenge in competing with Ohio State, Michigan, and the sport’s true elites?
Only time—and a nearly $50 million investment—will tell.
What’s Next for Franklin?
At 53 years old with a proven track record of building programs, Franklin will likely attract immediate interest from other Power 4 schools. His ability to recruit, develop talent, and create winning cultures makes him an attractive candidate despite the disappointing end at Penn State.
The 2025 season continues with Terry Smith at the helm as Penn State fights for bowl eligibility with five games remaining. The Nittany Lions face No. 1 Ohio State on November 1 at noon ET on FOX in what promises to be an emotional test for a program searching for identity after its most tumultuous month in recent memory.