Indiana's Curt Cignetti gets 8-year extension amid Penn State coaching rumors

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If Nittany Lions counting on Kurt Cignetti to go to State College, they need to resort to plan B.

Indiana University agreed to a massive eight-year contract extension with Cignetti, their head football coach, making him the third highest paid coach in college football.

Cignetti's new contract is worth $93 million over eight years, giving him approximately $11.6 million per season. The contract runs until November 30, 2033.

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Indiana Hoosiers head coach Curt Cignetti enters Kinnick Stadium before their game against the Iowa Hawkeyes on Sept. 27. (Jeffrey Becker/Imagn Images)

This extension comes after rumors that Cignetti is a Penn State coach who may try to replace him. James Franklinwho was sacked after three straight defeats this season.

“At Indiana University, we strive to perform everything we do at the highest level, and no one exemplifies that more than Coach Cignetti,” Pamela Whitten, Indiana University president, said in a statement. “Simply put, Sig is a winner.”

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Cignetti trails only Georgia's Kirby Smart ($13.3 million per season) and Ohio State's Ryan Day ($12.6 million).

“From a College Football Playoff appearance last year to a top-3 national ranking this year, the success of the IU football program has been tremendous. Kurt and Manette Cignetti live in Indiana and are thrilled that the Cignetti family will remain a part of the Hoosiers for many years to come,” Whitten continued.

Cignetti transformed the Hoosiers' football program. He won national and Big Ten Coach of the Year honors last season after Indiana finished the regular season 11-1 and advanced to the College Football Playoff. They were knocked out by the Notre Dame Fighting Irish, but it was clear that Indiana was heading in the right direction.

Indiana football coach Curt Cignetti watches his team take on Oregon at Autzen Stadium on October 11 in Eugene, Oregon. (Subum Im/Getty Images)

The Hoosiers are 6-0 this season with Heisman leader Fernando Mendoza at quarterback. Only Ohio State has a similar record in the Big Ten at six games.

Indiana's recent win over Oregon on its home field in Bloomington cemented the Hoosiers as a national title contender this season.

Before his contract extension, Cignetti was making $8.3 million this season without any bonuses. That was 18th in college football and just 7th in the Big Ten.

So, with Penn State potentially looking to take Cignetti away from the Hoosiers, Indiana quickly took steps to keep its coach in place and continue to build its program. Arkansas is also looking for a new head coach.