One name being mentioned a lot in State College, Pa., this week — in addition to James Franklin, Pat Kraft and a short-list of Penn State football coaching candidates — is that of shoe and apparel brand adidas.
As reported by Front Office Sports, Kraft, Penn State's athletic director, declined to provide any details about Franklin’s contract in a press conference Monday. “I’m not going to get into the financials. What I will tell you about the buyout … this is an athletics issue, this is not the institution’s issue,” Kraft said. “We in athletics are covering all the costs.” Beyond that, he gave no detailed information, Daniel Roberts and Dennis Young of Front Office Sports reported.
The school did give Front Office Sports a firm on-the-record denial of one claim that was widely circulated this weekend: that adidas pushed the school to fire Franklin, and will cover most of the $49.7 million buyout cost.
Sports Business Journal reported that when asked about Franklin’s more than $49 million buyout, Kraft “declined to dive into the specifics” but made it “clear that the athletics department is taking on the full cost and not the institution." Kraft said in his opening remarks, “This is also about the modern era of college football. Our next coach needs to be able to maximize elite-level resources, attack the transfer portal and develop at the highest level. ... We want someone who honors our tradition but isn’t afraid to evolve.”
But Kraft himself has come under scrutiny regarding the 10-year, $300 million adidas deal that takes effect in 2026.
Late Saturday, following Penn State's home loss to Northwestern, the second 20-point underdog to defeat the Nittany Lions in as many games, Penn State trustees released a statement defending the athletic department's deal with adidas, saying they were responding to "rumors and misinformation" about the contract, Sports Illustrated reported.
David Kleppinger, chair of Penn State's Board of Trustees, and vice chair Rick Sokolov signed the statement, which referenced "false rumors" and called a suggestion that Kraft acted irresponsibly in negotiating the deal "reprehensible." Penn State posted the statement on its website after Saturday's loss at Beaver Stadium.
"The process of negotiating and securing this deal was handled professionally by the Penn State administration, and in keeping with all of our standards," the statement said. "It was conducted rigorously, with a value-driven review of competing proposals. The Board of Trustees does not currently vote to approve apparel, beverage, multimedia or similar commercial agreements, however, University trustees were provided summaries of the competing proposals prior to the final agreement."
The statement appeared to be in response to reporting by Front Office Sports that suggested some Penn State trustees are "outraged by the process behind the decision" to switch apparel partners from Nike to adidas. Penn State in September announced what it called a "transformational deal" with adidas reportedly worth $300 million in cash, merchandise and NIL funding.
Penn State's contract with adidas is scheduled to take effect July 1, 2026. Nike has been Penn State's apparel provider since 1993.
According to Front Office Sports, some trustees were upset that Penn State did not disclose several aspects on the deal to the board. One was a $500,000 "annual product allotment" for Kraft. A Penn State spokesperson told Front Office Sports that the product allotment is "pretty standard for apparel deals."
"The decision to secure adidas as the official footwear, uniform, apparel and sideline partner for the Nittany Lions was made because of the transformational nature of the 10-year partnership," the Penn State trustees' statement said. "It is the best financial and overall partnership for Penn State. Recently circulating rumors suggesting anything else are simply false.
"... Finally, any suggestion about personal benefits for Intercollegiate Athletics executives is patently false. Pat Kraft, vice president for Intercollegiate Athletics, and his team maintain close working relationships with executives at all major suppliers — official partners and their direct competitors — as a fundamental responsibility of their position. That is their job. Any suggestion to the contrary is reprehensible."
In announcing the adidas deal, Kraft said it would set a new industry standard. The contract features a substantial component for Penn State's NIL initiatives, including funding and marketing opportunites for athletes. According to a September news release, Penn State and adidas "will be prioritizing high-impact NIL agreements and brand marketing campaigns" for athletes in all 31 varsity sports.
"The groundbreaking partnership between the Nittany Lions and adidas is an exceptional one for Penn State, and it will elevate the student-athlete experience at Penn State over the next decade," Kleppinger and Sokolov said in their statement Saturday night.
The statement concluded, "Board leadership, the University president, and the athletics director are unequivocally aligned on both the approach taken and the outcome reached. Penn State is entering this partnership from a position of strength, and it reflects the best overall outcome for our student-athletes, our fans and the long-term strength of Penn State Athletics."
Penn State is 3-3 after losing three consecutive Big Ten games for the first time since 2021. Penn State is 0-3 in the Big Ten for the first time since 2004, not including the 2020 COVID-shortened season in which the Nittany Lions lost their first five games.
