Tennessee committed a massive financial package in the ballpark of $2 million to land star Penn State edge rusher Chaz Coleman out of the transfer portal this offseason. Now he is gone, and the Vols are not on the hook for the full amount.

On3's Pete Nakos and Chris Low broke the news on June 26 that Tennessee has parted ways with Coleman after he was medically disqualified from the roster.

With the two sides parting ways under these circumstances, Tennessee is not on the "hook to pay out his full contract," per Nakos.

Coleman had missed the second half of spring practice and did not show up for his summer workout report day. Before the news broke publicly, Heupel was asked about his status at the SEC spring meetings in late May.

That answer was vague for a reason. The situation had clearly already been developing behind the scenes for weeks before the official announcement came on Friday.

“Chaz has been dealing with some things, and we’re here to support him,” Tennessee head coach Josh Heupel told On3. “We’ll continue to go through that process.”

Coleman was one of the most talked-about transfer additions in the SEC this offseason. He followed defensive coordinator Jim Knowles from Penn State to Tennessee, and Knowles had made it clear why he wanted him.

"He's explosive," Knowles said in February, per On3. "He's difficult to block. He can twist, turn and beat guys one-on-one. He has great initial quickness off the ball. He's a guy that can create havoc for an offense and really creates a matchup issue."

Coleman only played 144 snaps as a true freshman at Penn State in 2025. In that time, he still managed 12 pressures, three tackles for loss, and a strip sack. The potential was real.

Coleman was one of the biggest bets of Tennessee’s transfer portal class

Tennessee put around $2 million into Coleman to anchor Knowles' revamped defense, per Yahoo Sports. That was one of the biggest financial commitments the program made in the portal this cycle.

It did not work out. Coleman never played a single snap for the Vols. The medical disqualification means Tennessee walks away from this without paying out the full deal.

Knowles now has a hole in the pass rush he needs to fill before September. Tennessee opens the season on September 5, and the position Coleman was brought in to solve still needs an answer.

What do you think about how Tennessee handled the Chaz Coleman situation? Let us know in the comments.

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Written by

Farheen Fathima

Edited by

Shubhi Rathore