Penn State finally said “enough is enough” and decided to wrap things up with James Franklin after losing three games in a row. The Oregon loss was acceptable because Happy Valley knows it’s James Franklin’s kryptonite (losing against a top 10 team), but losing to a 1-4 UCLA team with no head coach is borderline criminal for a team like Penn State. The final blow came after their loss to Northwestern over the weekend. With James Franklin’s firing and multi-million dollars project, Penn State might be looking at some big-money problems, leaving them with no choice but to follow Tony Petitti and the Big 10s new scheme.

The Nittany Lions broke the bank for James Franklin and for their 2025 campaign. After going 13-3 in the 2024 season, Penn State saw a natty future with Franklin and decided to invest big without thinking twice. They spent a fortune retaining key players like Drew Allar and company, and poured millions into the transfer portal, especially on offensive weapons and defensive help.

They even brought in Jim Knowles from Ohio State on a record-breaking $3.3 million contract. Despite spending heavily this offseason, Penn State is 3-3 in Week 7, their worst start since 2007, failing to cash in on that investment. Penn State are not financially flexible after a $45 million buyout and $700 million stadium renovation. According to college football insiders, that’s where the money problem comes in, as it could force their hand to agree to the Big Ten’s $2.4 billion deal.

On October 12th, Yahoo Sports’ Ross Dellenger, On3’s Andy Staples, and Steven Godfrey hopped onto the “College Football Enquirer” podcast to discuss Penn State’s financial crisis after the buyout. Ross Dellenger started off with more troubling financial news for Penn State, saying, “They’re in the middle of their year, one of a three-year, 700-plus million stadium renovation. Man, the money being spent there and invested there is pretty, pretty insane. And it’s kind of to go back to Andy’s point. It’s why it’s really a hard question to answer of, what do you do with James Franklin, because he’s won a lot of games there.” That’s true, Franklin has won plenty of games for the Nittany Lions. He’s 104-5, and his players love him, but there hasn’t been an adequate return on investment for Penn State. The $700 million stadium renovation certainly isn’t helping either.

James Franklin’s struggles against heavy-hitters are inevitable at this point, as he’s 4-21 against top 10 ranked teams. Ross Dellenger doubled down on this and compared his situation to LSU’s Les Miles, saying, “I covered Les Miles at LSU and for the first eight to ten years, Les pretty much mainly only lost to his biggest rivals. Right, Alabama had that long streak and all that stuff, but then late in Les’s tenure, he started to lose other games, and it got to the point where they didn’t have a choice.” James Franklin and Les Miles share a similar story. Les Miles started hot with LSU, winning a national championship in 2007, then began to crumble toward the end of his career.

Ross Dellenger acknowledged the financial burden on Penn State, which might hold them back, “I don’t know that they can afford to drop what they did on the coaching staff, the roster, the stadium stuff, and James Franklin,” he said. “Unless, of course, they happen to get, you know, part of a $2.4 billion equity capital infusion in the Big Ten, part of the problem area that comp is completely accurate.” The $2.4 billion Dellenger mentioned refers to the Big Ten’s potential collaboration with the UC fund.

This would give the Big Ten a large amount of cash up front in exchange for a share, or “equity,” in a new company that the Big Ten plans to create. This means UC Investments would partly own the new business and earn money from it in the future, while the Big Ten would get immediate funds to grow and expand its operations.

For schools such as Penn State, this deal could be a big help financially. College sports are becoming more commercialized, and getting money from investors like UC Investments can provide quick financial relief. With their share of the Big Ten’s payout, Penn State could cover debts, improve facilities, and avoid financial struggles. In simple terms, the Big Ten would be trading a bit of its future profits for a big lump sum of money now, money that can help its schools stay stable and competitive.

More about Big 10s potential partnership with UC fund

The Big Ten Conference is close to making a huge financial move that could change how college sports work. According to ESPN, the league is preparing to approve a deal worth more than $2 billion, which would bring major cash to its 18 schools. The plan involves creating a new company called Big Ten Enterprises, which would handle all media rights and sponsorship deals. Ownership would be shared between the schools, the conference office, and an investment fund connected to the University of California’s pension system, which reportedly beat out private equity firms with a better offer.

Each Big Ten school would get a massive payout, with top brands like Ohio State and Michigan receiving slightly more than smaller programs. The deal would also extend the Big Ten’s Grant of Rights through 2046, locking in the schools and preventing future breakaways to other leagues. The UC pension fund would take a 10% stake but wouldn’t have any control over decisions, leaving power with the conference. Leaders believe this move would bring much-needed stability and help struggling schools manage rising costs and debts while keeping pace with SEC programs.

Still, not everyone is on board. Michigan and Ohio State have shown skepticism about letting outside investors buy into the conference. Some politicians have also voiced concern. U.S. Senator Maria Cantwell criticized the idea of turning public resources into profit and warned that the deal could invite government review. She even sent letters to Big Ten presidents, saying such partnerships could threaten the schools’ tax-exempt status. Despite these warnings, support for the plan is growing fast, and if it passes, it could completely reshape how college sports conferences handle money and power in the future.