Penn State is currently on the hook for roughly $50 million after firing James Franklin, but there's a unique wrinkle in Franklin's contract that could help the Nittany Lions save a sizable chunk of money.
Franklin is owed roughly $50 million from Penn State, which is the second biggest buyout in college football history behind only Texas A&M's $76 million to Jimbo Fisher. However, Franklin's contract extension with Penn State from 2021 includes a section that states he is "obligated" to look for a new job, according to Front Office Sports. If he lands one between now and the year his Penn State deal would have expired (2031), the salary he receives from his new job will "offset" the amount Penn State owes him.
This means that Penn State would potentially only have to pay Franklin the difference between his new job's salary and the roughly $50 million in the buyout. If Franklin gets a higher-paying salary, Penn State would owe him nothing. It's even possible Franklin could end up owing the school if payments have already been made, per the contract.
Here's are those clauses from his contract, courtesy of FOS:
Once terminated, Coach is obligated to diligently search for and make a good faith effort to obtain another position appropriate for his skill set (i.e., coaching, scouting and broadcasting only) and to provide the university upon request with evidence that he is seeking such employment.
Should Coach obtain such applicable employment prior to the date this Contract would otherwise have expired, the University’s obligation to make payments to Coach … will be offset by the total compensation earned by Coach from such applicable new position through the end of the otherwise unexpired term of this agreement.
The contract also states that Franklin must "make good faith efforts to obtain the maximum reasonable salary" at his next job.
Given these terms, it's in Penn State's best interest for Franklin to find another high-profile gig soon, though the 53-year-old may have other plans in mind. The job search terms delineated in the deal also seem vague and hard to enforce—does Penn State expect to be CC'ed on Franklin's emails to future employers? To receive copies of his updated resume?
In any case, Franklin and Penn State appear to have parted on mostly amicable terms, and both sides are now looking ahead to their own respective futures.
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This article was originally published on www.si.com as How Penn State Could Save a Lot of Money in James Franklin $49 Million Buyout.
