Penn State athletic department lost $60 million last year. Did James Franklin donate anything back to the school?

How many fans will fill stadiums this fall?

… $45 million in lost ticket revenue alone


The pandemic has wrecked havoc with many colleges and universities, but the entertainment sector, aka athletics, have had a major reckoning. 


Last week, Penn State announced its final numbers, and they were grim — as expected. 


The question is whether or not that can ever be recouped. Will all of Beaver Stadium and other football facilities be filled this fall?


Chances are that the crowds will return, but how many will be allowed in the stadiums, particularly if the students and other fans have not received the Covid vaccine?


The grim news


The information was given to the Penn State faculty last week, 


Penn State is on pace to see athletic department revenue decline by about $60 million this fiscal year while operating at about a $35 million loss, a significant impact that was characterized as close to a best-case scenario during the pandemic, according to Athletic Director Sandy Barbour.


Barbour, who gave the budget report during Tuesday’s faculty senate meeting, provided projections that aligned with several past estimates. The losses were widely expected. But she also outlined in greater detail where the department lost the most revenue and had the highest expenses during the pandemic.


Ticket sales, for example, had the biggest impact on lost revenue — about $45 million in all — although that total also included part of the previous fiscal year. (The university’s fiscal year runs from July 1 through June.) Other forms of lost revenue included Big Ten media rights ($9.4M), sponsorships ($4.5M), other game day revenue ($5.4M) and the Nittany Lion Club ($6M).


Josh Moyer, “How much did the pandemic cost Penn State’s 

athletic department?” Centre Daily Times, April 30, 2021


The schools received some television revenue, but not that much. 


Did expenses decline, too? Not much


While the A.D. did point out the problem, she is begging for about 20 million dollars to keep thing afloat this year,


In August, Barbour told the board of trustees that a $50 million deficit would be a worst-case, or possibly moderate-case, scenario for Penn State. 

The best-case scenario? A need for $20 million to $25 million in debt service, which is where intercollegiate athletics currently stands because football and other sports played in the fall.


With revenue decreasing during the pandemic, expenses obviously needed to decrease, too. Barbour intimated that wasn’t necessarily easy, considering all the additional COVID-related costs such such as testing ($6.32M), additional scholarships ($750K) and PPE/sanitation ($752K). But she also detailed the department’s $37.5 million in reductions:

  • Operating budgets (administrative; individual sport units): $30.5 million
  • Personnel (Salary cuts; furloughs; reduction in part-time hours; position holds): $3.7 million
  • Debt (refinanced): $2 million
  • Other expenses (summer school): $1.3 million

Josh Moyer, Centre Daily Times, April 30, 2021


In essence, not much was cut from the budgets of the major sports. 


Did Franklin give a gift?


Supposedly, while Coach James Franklin did not take a pay cut, he was supposed to give back a gift to the university. He should. 


What is he making?


Here is what he is making over the next five years, and remember, this is for a coach who had a .500 record last year,


Total Guaranteed Annual Compensation


2020: $5.4 million

2021: $5.5 million

2022: $5.75 million

2023: $6 million

2024: $6.25 million

2025: $6.5 million


Mark Wogenrich, “The year 2 details of Penn State Coach James Franklin’s contract,” FanNation, December 31, 2020


Oh, but there is more,


Annual Retention Bonus (payable Dec. 31)


2020: $300,000

2021: $500,000

2022: $500,000

2023: $500,000

2024: $500,000

2025: $500,000


Incentives ($1 million maximum per year)

  • Win College Football Playoff national championship: $800,000
  • CFP runner-up: $500,000
  • Qualify for CFP: $400,000
  • Win Big Ten championship game: $350,000
  • Qualify for New Year's 6 bowl game (not a semifinal): $300,000
  • Big Ten championship-game appearance: $250,000
  • Win/tie for Big Ten East title (no championship-game appearance): $150,000
  • National coach of the year: $150,000
  • Big Ten coach of the year: $100,000

Voluntary Buyout (payable to Penn State if Franklin leaves for another job)


2020: $5 million

2021: $4 million

2022: $3 million

2023: $2 million

2024: $1 million

2025: None


Mark Wogenrich, FanNation, December 31, 2020



And remember, this is for a guy who finished 5-5 last year without a bowl game. 

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