Following a surprising loss to the Northwestern Wildcats, Penn State has decided to part ways with head coach James Franklin. The move comes despite Franklin’s successful tenure, during which he became the second-winningest coach in the program’s history with a 104-45 record over 11 seasons. The former head coach also secured a Big Ten championship for the Nittany Lions in 2016.
With the position now open, several names are circulating as potential replacements, and one prominent candidate is current Nebraska head coach Matt Rhule. However, a specific clause in Rhule’s contract could complicate Penn State’s pursuit.
What Is the Clause in Matt Rhule’s Contract That Could Halt the Penn State Rumors?
Rhule has deep connections to Penn State, having played for the Nittany Lions in the 1990s, which makes him a natural frontrunner for the head coaching job. Despite the mutual interest, his contract with Nebraska has a significant roadblock.
Another clause from Matt Rhule’s contract at Nebraska that is worth remembering over the next uh, few weeks:
(via the Extra Points Library) pic.twitter.com/qoB8sT0IT6
— Matt Brown (@MattBrownEP) October 14, 2025
The clause in question states, “Unless the coach has been provided a note of termination in accordance with the other provisions of the agreement, neither the coach or anyone acting on the coach’s behalf shall engage in negotiations with other potential employers,” as Rhule’s contract reads. This provision means Rhule cannot enter negotiations with Penn State without first notifying Nebraska’s athletic director, Troy Dannen.
The Cornhuskers’ head coach addressed the rumors during a recent press conference.
“I love Penn State. Met my wife there, a fan since I was born. I love Pat Kraft, and I’m really sad to see Coach Franklin go. When you think about what he did for my alma mater, the program was in peril, and he gave stability and excellence,” Rhule began.
This situation is more interesting because Penn State’s athletic director, Pat Kraft, and Rhule have a professional history, as Kraft previously hired him at Temple. Despite his ties, Rhule played down the speculation but stopped short of explicitly denying his interest in the job.
MORE: Joey McGuire Reveals How Matt Rhule Changed His Son’s Life After Showing Real Character
“I’m not gonna talk a lot about job openings when they come. I’m not gonna talk about those things ever. I’m not going to talk about my contract. I absolutely love it here. I want us to continue to take the steps needed to turn this thing into a beast,” Rhule explained.
Another factor contributing to the situation is each program’s current standing. In Nebraska, things are looking up. The Cornhuskers have started the season with a strong 5-1 record, are ranked in the Associated Press poll, and, according to the updated PFN playoff meter, have a 10% chance of making the playoffs.
Meanwhile, the outlook for the Nittany Lions is far less optimistic. Penn State is currently projected to win only five games this season, and with a 0% chance of making the playoffs, its season appears to be all but over.
