Tim Banks Buyout: What Tennessee Owes Departing Defensive Coordinator
Tennessee owes Tim Banks a substantial buyout after parting ways with the Vols’ defensive coordinator on December 8. The decision by Josh Heupel comes less than a year after Banks signed a lucrative three-year extension, a reward for a standout 2024 season in which Tennessee’s defense ranked among the best in the country and helped propel the program to its first-ever Playoff berth after a 10-win campaign.
During Banks’ tenure, Tennessee’s defense posted impressive numbers. The unit allowed an average of 16.1 points per game, the lowest since the 1998 national championship team (14.5). The Vols also ranked sixth in the FBS in total defense (293.2 yards per game) and fifth nationally in yards allowed per play (4.56). These achievements contributed to Banks becoming one of the higher-paid defensive coordinators in the SEC and nationally, with his salary rising from $1.5 million to $2.15 million.
With the departure, Tennessee now faces a meaningful buyout. Under the contract terms, the Vols owe Banks the remaining salary on his deal, which, with a little more than two full years left, would be around $4.5 million. There is offset language tied to the separation payment that could reduce the buyout. Banks is obligated to use his reasonable best efforts to mitigate Tennessee’s liability by pursuing comparable employment as soon as practicable after termination.
Tennessee’s defense also regressed this season, marking a sharp contrast to the previous year’s success. Banks was Heupel’s sole defensive coordinator hire at Tennessee after joining from Penn State in 2021.
In a UT press release, Heupel expressed appreciation, saying, “I want to thank Tim for everything he has done for Tennessee the last five seasons. He helped restore our program to national prominence. More importantly, Tim is a great man of character and someone I have the utmost respect for. We wish Tim all the best moving forward. These are tough decisions but one I ultimately felt was necessary for the future of our program. We are fully committed to identifying our next defensive coordinator who will uphold the standard that Tennessee has historically been known for.”
This season, Tennessee’s defense slipped to 92nd in scoring defense, conceding 28.8 points per game—the most by a Vols defense in Heupel’s and Banks’ first year together in 2021 (29.1). In eight SEC games, Tennessee allowed 33.6 points per contest, ranking third-worst in the conference during league play. The move marks only the second coaching staff change among Heupel’s coordinators, and the first since offensive coordinator and tight ends coach Alex Golesh departed after the 2022 breakthrough season to become head coach at South Florida.
Controversy and questions are expected about the timing and impact of the split. Was the downturn in the defense enough to justify the cost of the buyout? How will the program approach hiring a successor who can sustain the high standard Tennessee has aimed to maintain? And what might the broader implications be for recruiting and the defensive identity of the program moving forward?
