Why Penn State Fired James Franklin

Kraft had been very publicly behind, in word and deed, Franklin for the past three years. He signed onto the roster-retention model Franklin chose after Penn State reached the College Football Playoff semifinals last season. He helped Franklin make Jim Knowles the highest-paid assistant coach in the country. And he funded the last stages of the Lasch Football Building renovation, whose overall budget topped $100 million.

"I think James has done an absolute masterful job," Kraft said in February.

But then Penn State lost to Oregon in double overtime; at UCLA, which was 0-4 at the time; and then to Northwestern to begin the Big Ten season 0-3. Kraft said he planned to sleep on the decision Saturday night but woke up Sunday believing that it was time to make a change.

"This was extremely, extremely difficult," Kraft said. "It's been a very difficult 48 hours. I felt after Saturday, and sitting down and looking at everything that where we were and what was in the best interest of my student-athletes and where the program was going at this time, we just had to make the hard decision. ... But I knew it was the right course of action for us as a program and more importantly, for the team."

Though he chose to fire Franklin after three losses, Kraft said that "this is not a three-game thing." He pointed to the program's recent arc and specifically to the expectations of this team. Penn State began the season ranked No. 2 in the country and was a popular preseason pick to win the CFP title.

"This is really diving into where we were as a program," Kraft said. "What is the trajectory of this program? And you all know, and I'm not shy to admit it, I'm here to win national championship. I believe our fans deserve that, and I wake up every day trying to achieve that goal."

The buyout question

Kraft would not discuss the terms of Franklin's buyout, which were complicated and partly unknown. Frankin in 2021 signed a 10-year contract that guaranteed him $80 million, including a $1 million annual insurance policy, over its full term. The buyout was listed at $8 million per year for the remaining contract years.

Penn State would owe Franklin about $50 million, including the remainder of his 2025 salary, if those buyout terms remain in place. However, Penn State amended Franklin's contract in 2024 to change his bonus structure based on the College Football Playoff expanding to 12 teams.

Penn State did not release a new term sheet regarding that amendment and also would not say whether any other contract language was changed. Though Kraft did not address it, Penn State was not bound in the original contract to paying Franklin a lump-sum buyout if it fired him. The athletic department could pay the buyout over multiple years.

Regarding the buyout, Kraft said only that Penn State Athletics will pay for it and would not use university funds.

'I just felt there was no other course'

Ultimately, Kraft said that he "felt there was no other course" than to make a coaching change. By doing so now, he gives the program a chance to reset this season and his search committee to vet candidates.

"Now remember that we're in a different era of football, and there's a lot of things that come with this new era, and transfers and everything, and so that probably was down the road in the thought process," Kraft said. "But I did feel like for our student athletes and the staff and the program and our fans, there just wasn't a choice.  When you make that decision, you make the call, I have to be the leader. I have to make hard decisions. And so that's why we I felt like it was appropriate."

Smith said that Franklin addressed the team Sunday in an emotional meeting. He added that Franklin recommended him as the interim coach "if something happened to him."

"James is a great guy, man," Smith said. "He's done so much for all of us that we're just thankful. We're going miss him."

"Did I expect to have to walk up those stairs yesterday at Lasch Building and talk to James like I did and have that conversation? No," Kraft said. ".. We’re all humans. James Franklin is a human being. It's a job he loved, and people can say what they want about James, but it's a job he loved.

"... You cannot make decisions of this magnitude lightly. So to say, 'We lost Oregon and we lost UCLA.' No, it's about, where are we as a program? Where are we going? How do I give my student-athletes the best chance to win? How do I continue to build this into a place that we are the best program in the country. That's the motivation. And so as you start to put all those things together, you've got to make the call. And that's where we were."