Penn State's $50M Buyout for James Franklin Sparks Debate Over "Gambling-Style" Contracts

STATE COLLEGE, Pa. - Oct. 12, 2025 - PRLog -- The firing of Penn State head coach James Franklin has reignited the national debate over massive guaranteed contracts in college football. With Penn State reportedly owing more than $49 million in buyout money, critics say universities are gambling with public funds—and losing.

According to Reuters and ESPN.com, Franklin's buyout ranks as the second-largest in college football history, behind only Jimbo Fisher's record-shattering $76–77 million payout from Texas A&M in 2023. That contract, which contained no offset or mitigation clause, remains the sport's most expensive lesson in bad financial planning.

A New York Times/The Athletic report called the rising trend of guaranteed deals "the sport's most expensive bad habit," comparing the practice to betting on a longshot parlay. Fans on Reddit's r/CFB and other forums have echoed those sentiments, calling the payouts "casino money with taxpayer chips."

Over the past decade, universities have spent hundreds of millions on buyouts for fired coaches, often while still paying off previous contracts:

• Jimbo Fisher — Texas A&M (2023): ~$76–77M (ESPN, SI)
• James Franklin — Penn State (2025): >$49M (Reuters, ESPN)
• Scott Frost — Nebraska (2022): $15M (247Sports, WOWT)
• Gus Malzahn — Auburn (2020): $21.45M (Montgomery Advertiser)
• Willie Taggart — Florida State (2019): $17–18M (ESPN)
• Bryan Harsin — Auburn (2022): $15.3M (CBS Sports)

In total, Power Five schools have paid more than $1 billion in severance over the past two decades, according to research from the Arnolt Center for Investigative Journalism. Much of that came from guaranteed contracts designed to attract top coaches but that now drain athletic budgets.

"Universities are acting more like casinos than classrooms," said higher-ed finance analyst Dr. Elaine Porter. "Every time they guarantee tens of millions with no performance safeguards, they're rolling the dice—and the students ultimately pay."

Observers are urging reforms such as performance-based clauses, buyout caps, and offset provisions to curb runaway spending. Until then, critics say, schools will keep placing high-stakes bets on coaches—and losing the house.

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