Penn State AD explains why James Franklin was fired in $49 million letdown

Penn State athletic director Pat Kraft opened up on Monday about the school’s “extremely difficult” decision to fire head football coach James Franklin on Sunday, a day after a brutal home loss to Northwestern that marked the team’s third straight defeat.

“Football is our backbone. We’ve invested at the highest level. With that comes high expectations,” Kraft said. “Ultimately, I believe a new leader can help us win a national championship, and now is the right time for this change.”

Kraft seemed to indicate Franklin, owed more than $49 million, wasn’t making the most at what he had at his disposal as the AD explained what he’s looking for in Franklin’s replacement.

“Our next coach needs to be able to maximize elite-level resources, attack the transfer portal and develop at the highest level,” Kraft said.

Penn State, coming off reaching the CFP semifinal last season, began 2025 as the No. 2 ranked team in the nation. After winning their first three games, the Nittany Lions dropped a double-overtime heartbreaker to Oregon at home before a stunning road loss to a previously winless UCLA team that had already fired head coach DeShaun Foster.

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After the most recent loss to Northwestern that left the team at 3-3, Kraft “felt there was no other course” as he took stock of the state of the program Sunday.

“You take the data, right? This is not a three-game thing,” Kraft said. “This is really diving into where we were as a program. What is the trajectory of this program? And you all know, and I’m not shy to admit it, I’m here to win a national championship. I believe our fans deserve that, and I wake up every day trying to achieve that goal.”

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With scrutiny on the buyout that has caused an uproar on campus, Kraft said the athletic department is solely responsible for the money owed to Franklin.

“This is an athletics issue. This is not the institution’s issue,” Kraft said. “So we, in athletics, are covering all the costs. We are absorbing all the costs associated with this.”

In the current college sports climate, it’d be no surprise if other top programs would be circling Penn State’s players to see if any would be interested in transferring.

But one reason Kraft is confident the team will have a strong bridge to its new head coach is interim head coach Terry Smith, whom Kraft described as an “elite recruiter.”

“I’m not gonna be naive. I probably know that every Power 4 conference, every Power 4 team has reached out to our student-athletes already,” Kraft said. “One of the reasons I was comfortable in doing this now is because of Terry.”

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Penn State will have to navigate the rest of this ugly season — which includes matchups with No. 1 Ohio State and No. 3 Indiana — without starting quarterback Drew Allar, an NFL prospect who suffered a season-ending leg injury against Northwestern.

The Nittany Lions visit Iowa on Saturday.