It seems like the whole world is calling for James Franklin to either be fired or mutually part ways with Penn State. Some think it’s best for his career, others think it’s best for Penn State’s future, but what are the actual specifics of the deal?

Franklin signed his 10-year contract extension in 2021, and it took effect in January 2022. Per the Centre Daily Times, which published Franklin’s financial term list, the deal saw the Nittany Lion head coach make base compensation of $500,000, supplemental pay totaling $6.5 million, and a $1 million life insurance loan.

For those who don’t know how college coaching contracts work, the base pay is his official university salary. This is what appears on state employee records and is generally paid for by Penn State’s general fund, which includes tuition and taxpayer money.

The supplemental pay is for anything from media appearances and speaking engagements to performance-based incentives. For example, Franklin makes $200,000 for an appearance in any bowl game. This money comes from the Penn State Athletic Department.

The $1 million loan for life insurance is generally used as a way to keep a coach from leaving a school. Penn State gives Franklin $1 million annually to pay for a life insurance policy. The university can then recover the money from the policy’s value, or the loan can be forgiven.

In this case, Penn State would likely forgive the loans, even if Franklin decides to leave this season or is let go.

Another aspect of the contract that affects Franklin’s dismissal is the actual buyout clause. Under previous athletic director Sandy Barbour, the school promised to give Franklin the sum of his base compensation, supplemental pay, and life insurance loan left.

This means that since those add up to $8 million every year, Penn State would have to give the former Vanderbilt head coach $56 million if it fires him during the season. This number drops to $48 million on January 1, 2026, and then drops another $8 million every year on January 1 until this contract is up.

Now, if the other side of the story were to happen, and Franklin were to leave on his own terms, he would actually owe Penn State money. According to the contract, Franklin would owe Penn State $2 million to leave in 2025. This number drops to $1 million on January 1 and remains that way until the completion of the contract in 2031.

Similar to the life insurance loan, if Franklin were to ask to leave, it’s likely Penn State would waive this as well.

The $56 million buyout ranks ninth in the country, per Sports Illustrated. The money simply is not worth it for Penn State, a school already going through financial difficulties with a $750 million renovation going on at its stadium.

What could happen, however, is that a booster or group of boosters offers to pay for the buyout. This happened recently with former Arkansas head coach Sam Pittman. The Razorback Foundation, which is a group of boosters with a goal of supporting Arkansas’ athletic endeavors financially, paid for the $9.3 million buyout.

While $9.3 million is nowhere close to $56 million, athletic departments and boosters have come together to split the cost of buyouts before as well. In 2023, the Texas A&M athletic department and the 12th Man Foundation both helped pay for Jimbo Fisher’s $76 million buyout. Although this was before schools had to worry about spending over $20 million a year on paying athletes.