Penn State is in the midst of turmoil both on the field and behind the scenes.
After firing head coach James Franklin on Sunday, there was a lot of speculation about what forced the staggering $48 million buyout. Some rumors surfaced that Adidas played a shadow role in the decision.
The dismissal came just hours after the Nittany Lions’ third straight loss, which was a stunning 22–21 defeat to Northwestern that dropped them to 3-3.
Franklin, who led Penn State since 2014, exits with a 104-45 record, one Big Ten championship and a College Football Playoff berth last season. His most recent contract, a 10-year extension signed in 2021, guaranteed him $8.5 million this year and nearly $50 million if fired without cause, according to USA Today.
But it was not the record or the buyout that drew national attention. It was the claim that Adidas bankrolled Franklin’s firing.
Was Adidas behind James Franklin's firing?
Mike Asti, managing editor of Pittsburgh Sports Now, posted on X that a source inside Penn State told him Adidas “drove the James Franklin firing and is why it happened today,” alleging that the apparel company committed to covering most or all of the buyout.
The post went viral Sunday afternoon, fueling speculation that the university’s new $300 million Adidas apparel deal was already an influence on the future of Penn State athletics. Asti’s source claimed Adidas wanted a new coach even before the team’s recent slump, pressuring the school to make a change sooner rather than later.
Source at Penn State: I have been told that Adidas drove the James Franklin firing and are why it happened today. They committed to pay most or all of the money. They also wanted a new coach before recent losses, but they made it hard for anyone at PSU to argue.
— Mike J. Asti (@MikeAsti11) October 12, 2025
Both Adidas and Penn State denied the report.
“The report is patently false,” the university said in a statement to Front Office Sports. “This decision was made solely by Penn State. Adidas is not helping to pay the buyout for Coach Franklin.”
Adidas also declined to comment beyond directing questions back to the university.
In response to the viral tweet Sunday that claimed Adidas drove the Franklin firing and paid for it, Adidas directed me to PSU; PSU said "The report is patently false. This decision was made solely by Penn State. Adidas is not helping to pay the buyout for Coach Franklin." @FOS
— Daniel Roberts (@readDanwrite) October 13, 2025
Penn State’s decision comes amid mounting tension among members of its board of trustees, who sources told Front Office Sports are frustrated with how the Adidas contract was approved. Several trustees reportedly never saw the full terms of competing bids from Nike or Adidas before the deal was finalized. Nike reportedly offered cash up front in a new deal. However, none of those details were disclosed to the board.
Athletic director Pat Kraft praised Franklin in a statement, saying the coach “rebuilt our football program into a national power” but added that “this is the right moment for new leadership.”
Franklin becomes the fifth Power Four head coach fired this season, joining Arkansas’ Sam Pittman, Oklahoma State’s Mike Gundy, UCLA’s Deshaun Foster, and Virginia Tech’s Brent Pry.
Whether Adidas truly had any hand in Franklin’s firing remains unclear. But the combination of a $50 million buyout and a $300 million apparel deal has left Penn State battling scrutiny.
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