Penn State has rarely fired a coach mid-decade, making James Franklin’s departure a historic shakeup for the program. The Oregon loss was acceptable because Happy Valley knows it’s James Franklin’s kryptonite (losing against a top-10 team). However, losing to the Northwestern Wildcats is borderline criminal for a team like Penn State. With James Franklin’s firing and multi-million dollar 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 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 Jim Knowles from Ohio State on a record-breaking $3.1 million contract. Despite spending heavily this offseason, Penn State is 3-3 in Week 7, its worst start since 2007, failing to cash in on that investment. Moreover, Penn State is 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 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 104-45, and his players love him, but Penn State hasn’t had an adequate return on investment. The $700 million stadium renovation is a thorn in the side.

James Franklin’s struggles against heavy-hitters are inevitable, 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, but 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 for a share, or “equity,” in a new company that the Big Ten plans to create. This means UC Investments would partly own the latest business and earn money from it in the future. On the flip side, the Big Ten would get immediate funds to grow and expand its operations.

This deal could be a massive financial help for schools such as Penn State. College sports are becoming more commercialized, and getting money from investors like UC Investments can provide quick financial relief. With its share of the Big Ten’s payout, Penn State could cover debts, enhance facilities, and evade financial battles. In simple terms, the Big Ten would be trading a bit of its future profits for a significant 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 substantial 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, bringing significant 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 split among the schools, the conference office, and an investment fund associated with the University of California’s pension system; this fund reportedly outmaneuvered private equity firms with a more advantageous proposal.

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 no 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 that it would break the entire system. 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. If it passes, it could completely reshape how college sports conferences handle money and power in the future.