Jim Knowles’ move to Penn State didn’t work out for either party. After leaving a national championship roster in 2024, he led the Lions to a 34th-ranked defense nationally. In between, James Franklin was fired. Then Matt Campbell arrived and immediately brought his own defensive coordinator, Jon Heacock. Knowles also found a new gig as Tennessee’s defensive coordinator.

The former Penn State DC signed a three-year deal with Tennessee worth $6.6 million plus bonuses. Knowles is also set to get a buyout from Penn State, which comes out of the roughly $7 million they still owed him on his contract.

What is Jim Knowles’ new contract structure at Tennessee?

With two years still left on his Penn State deal, Tennessee brought Knowles in to replace fired defensive coordinator Tim Banks. With the total amount being $6.6 million, he’ll make $2 million in 2026, $2.2 million in 2027, and $2.4 million in 2028. The deal runs through January 31, 2029. It’s not a bad reset for his career at all. Knowles will also receive a $35,000 moving stipend, a $600 monthly car allowance, and several other benefits in addition to his salary.

Banks, meanwhile, was set to make $2.15 million a year after signing an extension in January. Tennessee originally owed him more than $4.5 million, two full years plus about seven weeks. But his contract included the usual mitigation clause, which lowers his buyout once he lands another job. Banks’ run in Tennessee had its ups and downs. He inherited a thin roster in 2021, and although the defense struggled early, it improved every season.

Last year, the unit turned into a powerhouse, ranking 7th in scoring defense (16.1 points per game) and 6th in total defense (293.2 yards per game). That surge played a huge role in Tennessee’s 10-win season and College Football Playoff berth. But this season was a different story. The defense collapsed, finishing 91st in scoring defense and 87th in total defense. Banks is now expected to join Auburn as their safeties coach, per multiple reports.

Top Stories

Forced to Leave FOX, Cowboys Legend Troy Aikman Says ESPN Is Like ‘U.S. Government’ & Clearly Distinguishes the Two Networks

Who Is Paige Shiver? All About Michigan Football Staffer & Daughter of Veteran Bears Scout Jeff Shiver

FOX Issues Strict Ban on Terry Bradshaw But NFL Legend Defies It to Join Popular Morning Show

$250M Michigan Booster Names Super Bowl-Winning HC as Better Fit to Replace Sherrone Moore Than Kalen DeBoer

Michael Jordan Brings NASCAR to Its Knees as Jim France’s Courtroom Collapse Triggers Settlement

What Happened to T.J. Watt? Why Is He Hospitalized? Steelers Announce Latest News on LB Before Dolphins Game

How much did Jim Knowles make at Penn State?

In 2025, Knowles was actually the highest-paid defensive coordinator in college football, pulling in $3.1 million a year at Penn State. His deal, finalized that January, came with a pretty sweet bonus setup too. He would have gotten $186,000 for a bowl game, $248,000 for reaching the Big Ten title game, and up to $1.2 million if Penn State won both the Big Ten and the national championship. Not a bad payday for a coordinator.

But what went wrong at Happy Valley? The first real wake-up call for Jim Knowles’ Penn State defense came on October 4, 2025, when the Nittany Lions were blown out by a previously winless UCLA team. Penn State gave up 42 points that day. A lot of the blame fell on Knowles’ complicated defensive schemes, which were tough for players to fully grasp. Guys were still trying to learn the system deep into the season, thinking too much instead of reacting naturally.

Knowles really felt the pressure when Matt Campbell showed up in Happy Valley with a whole crew of coaches from Ames, including Iowa State defensive coordinator Jon Heacock. It didn’t take long for Knowles to realize his clock was ticking. Even though he wasn’t officially “fired,” Campbell’s staff didn’t plan to keep him. That’s when the 60-year-old started negotiating a buyout for the final two years of his contract, worth over $7 million.