What Is Mike Gundy’s Buyout at Oklahoma State?

Questions are mounting about Mike Gundy’s future at Oklahoma State after a brutal loss to Tulsa added to a rough string of performances.

With fans and boosters asking whether the longtime coach will be replaced, it makes sense to look at what Gundy’s contract says. His deal gives OSU a lot of financial obligations, but it also gave both sides mechanisms to respond if things go very wrong.

In December 2024, Gundy agreed to a restructured contract that reduced his salary by one million dollars while revising his buyout terms. Under that agreement he will make about $6.75 million in 2025. Each year after that his salary increases by $125,000. The current contract runs through the end of 2028.

The buyout structure under that deal is critical to understanding how difficult it is for the university to move on quickly. If Oklahoma State were to fire Gundy after the 2025 season, the buyout would cost the school $15 million. That same $15 million figure applies if the move came after the 2026 season. If the university waits until after the 2027 season the amount drops to $10 million.

One important change in the restructured deal is the buyout no longer being based on a percentage of remaining salary or remaining years but rather a flat dollar figure based on the timing of termination. That gives clarity to OSU’s decision-makers but also locks in high costs for the near‐term.

Another component of the new contract requires Gundy to increase his involvement in fundraising and donor outreach. OSU also removed a five-year rollover clause that had previously made parts of his contract renew automatically unless action was taken.

Given those figures, firing Gundy now would be expensive. If he is terminated after 2025 or 2026 it would cost OSU $15 million. Waiting until after 2027 drops the figure to $10 million. For a school balancing NIL, facility costs, coaching salaries, and expectations, that kind of payout is significant. It gives Gundy cushion, but it also increases pressure as each loss raises the stakes.

In short, Gundy’s contract gives him both protection and responsibility. The structure makes it costly for Oklahoma State to exit immediately. But it also gives the board clear financial consequences tied to performance. With this season’s results, every remaining game matters not just for the team record but for the school’s decision whether to let a legend stay or to pay for a clean break.