After two months of intense market exploration, the Penn State Nittany Lions found their new head honcho in three-time Big 12 head coach Matt Campbell on Friday. With his hiring, everyone in State College has one question on their mind: what about their beloved hometown hero, Terry Smith? Well, he’s not going anywhere anytime soon.

“Terry Smith is expected to stay at Penn State! (Per Audrey Snyder),” College football insider Landon Tengwall hopped onto X and shared the news that every Nittany Lions fan was eager to see.

According to Pete Thamel of ESPN, the former interim head coach is signing a four-year extension to remain a big-time part of the coaching staff.

It wasn’t a given that Smith would stick around, though. He had just wrapped up a stint as the interim head coach with a 3-3 record after James Franklin got fired. Plus, they almost beat the No. 2-ranked Indiana Hoosiers in week 13.

Due to his successful run and experience, other schools, such as the University of Connecticut and Memphis (ironically!), were trying to court him for their own head coaching positions. Smith had options, but his heart belongs to Penn State.

Terry Smith’s connection to Penn State runs deep, dating back to the late 1980s when he was a star wide receiver for the Nittany Lions, playing under the legendary Joe Paterno from 1987 to 1991. He finished his college career ranking highly in the school’s record books. For example, he is tied for 12th in career receiving touchdowns with 15 and 16th in career receiving yards with 1,825.

He was part of the successful 1991 team that went 11-2 and won the Fiesta Bowl. Eventually, he earned his degree in business management before heading to the NFL. After a solid career in the NFL, he had a very successful run as a high school head coach. Smith then returned to Happy Valley in 2014 when James Franklin hired him.

He then worked his way up from cornerback to the associate head coach position. Additionally, he has been a powerhouse in recruiting, helping secure 10 consecutive top-25 recruiting classes. With Terry Smith locked in for good, the expectations rise for Matt Campbell for a big 2026.

Matt Campbell’s lofty expectations for 2026

Expectations for Matt Campbell’s first season as the head coach of the Penn State Nittany Lions in 2026 are going to be massive, and for good reason.

The university is investing heavily in him, and they’ve given him some serious resources to work with. He’s reportedly receiving a substantial amount of money for the program’s (NIL) funds. The word is that the budget is more than $30 million just for the roster, which should help retain current talent and attract top transfers.

Plus, he’s getting an increased budget for his coaching staff. According to reports, an additional $17 million is to be allocated for hiring the top assistants in the country. With that kind of financial backing, the pressure is on from day one for Campbell to hit the ground running.

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With all that talent and money behind him, fans expect more than just a decent season. They want Penn State to be a major player in the newly expanded Big Ten. Although Natty might seem distant, you need to understand Campbell’s arc.

Matt Campbell’s coaching record is impressive. The man’s got a sweet 107-70 overall record from his time at Toledo (35-15) and Iowa State. However, he truly became a legend at Iowa State, becoming the winningest coach in school history, with a record of 72-55 over a decade.

He took a team that wasn’t winning much and turned them into regular contenders in the Big 12. He had eight winning seasons there, including their first-ever major bowl win and a school-record 11 wins in 2024. Everyone is looking for the Nittany Lions to return to a significant New Year’s Six bowl game or even make a push for the College Football Playoffs.