Tennessee’s Big Hire: Inside Jim Knowles’ New Contract and Salary

Tennessee made a major move this offseason by bringing in Jim Knowles as its new defensive coordinator, giving the veteran coach a fresh start after a tough run at Penn State. Jim Knowles spent just one season in Happy Valley, but the partnership never clicked. Penn State’s defense finished 34th nationally, James Franklin was fired, and new head coach Matt Campbell quickly chose to install his own defensive staff. That opened the door for Tennessee, which didn’t waste any time securing Knowles for the next three seasons.

Jim Knowles agreed to a three-year, $6.6 million contract with the Vols. He’ll earn $2 million in 2026, $2.2 million in 2027, and $2.4 million in 2028, with the deal running through January 31, 2029. Along with the base salary, Tennessee is giving him a $35,000 moving stipend, a $600 monthly car allowance, and additional perks that are common for high-level assistants. And because Penn State still owed him around $7 million, he is also expected to receive a significant buyout from his former school.

The move comes after Tennessee parted ways with former defensive coordinator Tim Banks. Banks had signed an extension earlier this year and was set to make $2.15 million annually, with more than $4.5 million still owed to him. But his contract included a mitigation clause, reducing the financial hit once he accepts another coaching job. Multiple reports say he’s headed to Auburn as the Tigers’ new safeties coach.

Banks’ time in Knoxville had a little bit of everything. He walked into a thin roster in 2021 and worked through early struggles. With each season, though, the defense grew stronger. Last year, Tennessee’s defense was one of the best in the country, finishing 7th in scoring defense (16.1 points allowed per game) and 6th in total defense (293.2 yards per game). That turnaround helped the Vols reach 10 wins and earn a College Football Playoff berth. But this season was a sharp slide in the other direction, as the unit fell to 91st in scoring defense and 87th in total defense.

Jim Knowles arrives with a big reputation and a big paycheck. Before joining Tennessee, he was the highest-paid defensive coordinator in college football, making $3.1 million per year at Penn State. His contract there came with hefty bonuses—$186,000 for a bowl appearance, $248,000 for reaching the Big Ten title game, and more than $1.2 million if Penn State had won both the Big Ten and a national championship.

So why did things fall apart in Happy Valley? Problems started early. On October 4, 2025, Penn State’s defense was rocked by a previously winless UCLA squad, giving up 42 points. Knowles’ complicated defensive approach became a major concern, with players struggling to pick up the system deep into the season. When Matt Campbell arrived with his longtime defensive coordinator Jon Heacock, it became clear Jim Knowles wasn’t going to be part of the new direction. Though not technically fired, he began negotiating a buyout for the remaining two years of his deal.

Now 60 years old, Jim Knowles gets a reset in Knoxville—and Tennessee gets a proven defensive mind hungry for a rebound. The Vols believe his experience can spark another major leap on that side of the ball.

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