Penn State announces over $500 million debt for 2025 fiscal year

Dec 8, 2025; University Park, PA, USA; Penn State University athletic director Pat Kraft answers questions from the media after Matt Campbell is announced as the Penn State Nittany Lions new head coach during a press conference at the Beaver Stadium Press Room. (Mandatory Credit: Matthew O'Haren-Imagn Images)

By USA Today Network via Reuters Connect

February 9, 2026

To say that the Penn State Nittany Lions experienced some turmoil in the 2025 season would be an understatement.

After losing a double-overtime game to the Oregon Ducks at home, and following that up with back-to-back upset losses to the UCLA Bruins and Northwestern Wildcats, Penn State athletic director Pat Kraft made the tough decision to part ways with head coach James Franklin after 12 years on the job.

While the Nittany Lions were eventually able to right the ship and hire former Iowa State coach Matt Campbell to take over the program, Kraft is still dealing with some hardships in the athletic department.

These hardships take the form of a debt from the 2025 fiscal year totaling more than $500 million.

According to Sportico, Penn State closed fiscal year 2025 with $534.7 million in athletics-related debt, more than tripling the $163.1 million it reported the prior year. Of course, there is a reason for this massive debt, as the university is undergoing a $700 million renovation to Beaver Stadium, which is being financed through debt that the school says will be repaid by “fundraising, concessions, naming opportunities, sponsorships, and ticket sales.”

Assuming that Campbell can come in and get the Nittany Lions back to prominence in the college football world, then the university should be able to chip away at this debt over time. If Penn State struggles over the next few years, though, this could become a much bigger story.