Oklahoma State’s decision to fire longtime head coach Mike Gundy in September 2025 ends a 21-year run in Stillwater, and it comes with a steep price tag. The university is on the hook for a $15 million buyout, one of the largest in college football. Here’s a breakdown of what the figure means, how it ties into his contract, and how the school will likely handle the payout.
Mike Gundy’s Buyout Explained
Gundy signed a contract extension that kept him under deal through 2028. His 2025 salary was set at $6.75 million with incremental raises of $125,000 each year. But instead of tying the buyout to the remaining value of his contract, Oklahoma State negotiated a flat buyout figure.
• Fired before the end of the 2027 season: $15 million owed
• Fired after December 31, 2027: $10 million owed
Because the school fired Gundy now, it locked itself into paying the full $15 million. Waiting another two years could have saved the school $5 million, but that wasn’t an option after some very mediocre recent results.
How the Buyout Could Be Paid
The athletic department hasn’t made the official payment schedule public, but programs rarely pay such massive buyouts in one lump sum. The standard approach is to spread payments across multiple years.
Here’s what that could look like:
| Year | Projected Payment |
|---|---|
| 2025 | $3.75 million |
| 2026 | $3.75 million |
| 2027 | $3.75 million |
| 2028 | $3.75 million |
Another common option is a lump sum followed by installments. For example:
• $5 million lump sum in late 2025
• $2.5 million annually from 2026–2029
This method eases long-term strain while still giving the coach a large immediate payout.
Does a New Job Offset the Buyout?
Some contracts reduce the buyout if a fired coach finds another job. Gundy’s deal, however, was structured as a guaranteed flat buyout. That means Oklahoma State must pay the entire $15 million regardless of whether he lands another head coaching role.
How Oklahoma State Will Cover Gundy’s Buyout
Universities typically piece together buyout payments from multiple sources, including:
• Athletic department reserves
• Contributions from high-dollar boosters
• Borrowing against future revenues
With fans frustrated after a 3–9 campaign in 2024, an 0–9 record in Big 12 play, and a 1–2 start this year that included a home loss to Tulsa for the first time since 1951, OSU’s administration felt pressure to act despite the cost.
OSU’s Costly Reset
Mike Gundy’s firing will cost Oklahoma State $15 million. The payout is expected to be spread across several years, likely through installments or a lump sum plus smaller payments. With the contract guaranteeing the full amount, the Cowboys face a major financial hit, one they believe is necessary to reset the football program after back-to-back disastrous seasons.
