Terry Smith’s run as Penn State’s interim head coach after athletic director Pat Kraft fired James Franklin didn’t get him hired to the job full-time, but it did earn the former Nittany Lion wide receiver a massive payday.
Smith, who players, boosters, and the fanbase all pushed for to take over the program he once played for, will be staying on Matt Campbell’s staff in Happy Valley. According to Jordan Schultz, Smith will be doing so as the highest-paid non-coordinator in the sport.
Sources: Penn State will make Terry Smith the highest-paid non-coordinator in college football.
— Jordan Schultz (@Schultz_Report) December 7, 2025
AD Pat Kraft felt it was imperative to retain Smith, who played for the Nittany Lions and has coached there for the last decade-plus. https://t.co/8IP3IUE4Pw pic.twitter.com/gJwecvlPYB
Penn State’s win at all costs attitude extends to Terry Smith
With Kraft leading the athletic department, Penn State has been willing to do anything it takes to win. That push started last offseason when the program hired Jim Knowles away from Ohio State and made him the highest-paid defensive coordinator in the sport.
At the time, Knowles was coming off a national championship, and though there was reportedly friction between him and Ohio State head coach Ryan Day, it was quite the coup for Penn State to bring him to Happy Valley. Of course, Penn State’s all-in season went bust with three straight losses to start Big Ten play, and now Knowles' future is in question, so with Franklin gone, Smith, despite not calling plays on either side of the ball, quickly became the most important person on the staff.
As the momentum for Penn State to hire Smith grew along his three-game win streak to lead Penn State to bowl eligibility, many players and coaches on staff would reportedly only stay for next season if Smith was hired.
Now that Kraft and Campbell were able to retain him despite reported interest from UConn and Memphis for their head coaching vacancies, there’s a much greater chance that Penn State will avoid a major transfer portal exodus this offseason.
Though many of Penn State’s best players are out of eligibility, it’s crucial to keep at least some of Franklin’s roster together to ease the transition to the Matt Campbell era. Plus, even the cost of the highest-priced non-coordinator in college football is a whole lot cheaper than paying to overhaul a roster in the transfer portal.
Kraft recognized Smith’s value to the program, and while there will undoubtedly still be those who believe he should’ve been given the chance to lead the program long-term, his partnership with Campbell is the best-case scenario for Penn State.