James Franklin’s Penn State buyout includes a clause that could push him back into work sooner than many expect. While his departure cost the university a massive payout, the contract language forces Franklin to look for another job, or risk losing part of that money.
James Franklin Must Seek Employment or Lose His Buyout
Franklin’s 2021 contract included a standard mitigation clause. It states that if he’s fired, Penn State must keep paying him, but only as long as he actively searches for another job. If he takes a new role, what he earns there directly reduces what Penn State owes.
- He must “diligently seek” employment in coaching, broadcasting, or another related field.
- He’s required to pursue market-rate pay and provide evidence of his search if asked.
- Any new income offsets his buyout payments, dollar for dollar.
So, if Penn State owes him $8 million annually and he takes a $4 million coaching job, the university only owes the remaining $4 million. If he earns an equal or higher salary, the payments stop entirely.
What Happens If Franklin Doesn’t Look for Work
Under Pennsylvania and U.S. employment law, Franklin has a duty to mitigate his losses. That means he has to make a reasonable effort to find similar work. If he doesn’t, Penn State could argue that he’s in breach of contract and stop or reduce payments.
“Reasonable effort” doesn’t mean he has to accept any offer. Courts usually expect someone in his position to seek jobs that are comparable in stature and pay, Power Five coaching jobs, major coordinator positions, or high-profile media work. But if he sits back and collects checks without trying, PSU could take him to arbitration or court to withhold part of his $59 million buyout.
Why a Return Makes Sense Financially
Given those terms, Franklin has every reason to stay visible in the football world. Coaching or broadcasting would not only offset PSU’s payments but help preserve his long-term career value. Sitting out too long could make it harder to justify future head-coaching offers.
It’s likely he’ll explore opportunities such as:
- Power Five coordinator roles: He could rebuild his reputation at a major program while collecting a reduced PSU payout.
- Media work: Networks like ESPN or Fox have shown interest in former coaches with strong public profiles. Franklin’s personality and media savvy fit that mold.
- Consulting or analyst work: Short-term roles that keep him involved could still satisfy the contract’s “diligent search” requirement.
What to Expect Next
If Franklin’s buyout follows typical pacing, Penn State’s payments will continue on an annual or semiannual schedule. The moment he accepts another job, the numbers change. He’ll likely balance the desire to stay relevant with the need to protect his finances, which is exactly what the contract was designed to force him to do.
Bottom line: Unless he’s ready to fight Penn State in court, James Franklin will be back, whether it’s on a sideline or in a studio, much sooner than most expect.
