Penn State Signs AD Patrick Kraft to Major Contract Extension

Kraft, who led Penn State to becoming a $200 million athletic department, gets a new contract through 2032.

Penn State Athletic Director Patrick Kraft (right) poses with football coach James Franklin before the 2023 Rose Bowl. / Kirby Lee-USA TODAY Sports

Penn State Athletic Director Patrick Kraft, who is leading nearly $800 million in facilities projects including the massive renovation of Beaver Stadium, has signed a five-year contract extension through 2032. The extension will increase Kraft's guaranteed salary by almost $1 million per year and include annual bonuses of up to $350,000.

The Penn State Board of Trustees' Committee on Equity and Human Resources unanimously approved Kraft's contract extension Monday.

“Pat is an extraordinary leader who brings valuable insight and strategic direction to Athletics and the University, with a focus on both athletic and academic success for Penn State’s more than 800 student-athletes,” Penn State President Neeli Bendapudi said in a statement. “This new contract will help ensure Penn State continues to benefit from Pat’s leadership for years to come.”

Penn State did not release a term sheet regarding Kraft's new contract but said in a statement that his annual guaranteed compensation would average $2.26 million over eight years. Kraft's first contract, which he signed in 2022, averaged $1.327 million in guaranteed compensation over five years.

Kraft's first contract also included up to $250,000 annually in performance-based incentives for athletic department achievements such as making the College Football Playoff, reaching the NCAA Basketball Final Four, winning team national and conference championships and graduation-success rates. Kraft's new contract includes bonuses of up to $350,000 annually.

“I am deeply thankful to President Bendapudi and the Board of Trustees for their unwavering support of our intercollegiate athletics program and our leadership team,” Kraft said in a statement. “Penn State is a remarkable place, made so by its incredible people – our talented student-athletes, dedicated coaches and staff, passionate supporters and engaged community members. I am excited for us all to continue working together to elevate Penn State Athletics and the University as a whole."

Since becoming Penn State's athletic director in 2022, Kraft has led a series of major facility and budget projects, highlighted by the $700 million renovation of Beaver Stadium. Penn State's Board of Trustees approved funding for the project in May. Work is underway and scheduled for completion before the 2027 Penn State football season.

Kraft has been a strong advocate for renovating Beaver Stadium, calling it essential to position the venue as a year-round destination and to generate new revenue opportunities.

"It is time for Penn State to catch up with its peers," Kraft said. "Beaver Stadium should be more than just average, more than just comparable to others. It should be a model for the college and the NFL world, with innovation, experiences that are different and exciting technology. If we fail to act, we will face significant infrastructure issues in the years ahead."

Kraft also is guiding nearly $100 million in other athletics projects, including a renovation of the Jeffrey Field soccer facility, the new all-sports training table and a new indoor practice bubble located near Beaver Stadium.

In his first year as Penn State's athletic director, Kraft increased both revenue and spending to program records. During fiscal year 2022-23, in which Penn State went to the Rose Bowl, the athletic department generated a record $202.2 million in operating revenue. It also spent $202 million, surpassing the $200 million threshold for the first time. According to Sportico, Penn State ranked seventh in operating revenue and fifth in operating expenses for FY 2022-23, the most recent year for which figures are available.

In a news release, Penn State said that Kraft has secured the second-, third- and fourth-largest gifts in athletics history. Penn State recently announced $35 million in donations for the Beaver Stadium project, including an anonymous $10 million donation. Penn State also said that Kraft has secured more than $1 billion in guaranteed revenue over the next decade and experienced "record-breaking ticket sales."

Penn State recently announced a "landmark" ticketing contract with the sports firm Elevate that one trade publication called potentially "massive" in terms of revenue generation.

“Pat has done an amazing job leading Penn State Athletics, achieving new records in philanthropic gifts while always focusing on enhancing student-athlete well-being,” Matthew Schuyler, chair of the Penn State Board of Trustees, said in a statement. “We are thrilled that Pat will continue to lead ICA through the completion of the largest athletic construction project in our history, and, under his leadership Penn State Athletics is poised to reach new levels of success and distinction.”

Penn State finished 23rd in last year's Learfield Directors' Cup standings, which evaluate success across all varsity sports. The Nittany Lions won six individual NCAA titles this past year, and the wrestling team won its fourth consecutive NCAA team title. Penn State placed 15th in the Learfield Directors' Cup in 2022.

Penn State earned a Graduation Success Rate of 93 percent, according to the NCAA's most recent report. Twelve teams earned perfect scores.

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Penn State on SI is the place for Penn State news, opinion and perspective on the SI.com network. Publisher Mark Wogenrich has covered Penn State for more than 20 years, tracking three coaching staffs, three Big Ten titles and a catalog of great stories. Follow him on X (or Twitter) @MarkWogenrich.