House-NCAA Revenue Sharing Forces Oklahoma Athletics Layoffs

The Oklahoma Sooners are the latest school to makes changes as the House vs. NCAA settlement nears approval.

This time, the athletic department is reducing its workforce by about 5% of full-time employees which comes to about 15 employees, per the OU Daily, the campus’ student newspaper.

Per the report, athletic director Joe Castiglione sent an e-mail to all athletics employees last week, a copy of which was provided to the OU Daily. He announced the workforce reduction, along with announcing that he was accepting a reduction in pay, though he did not disclose how much.

Why is Oklahoma Reducing Athletics Workforce?

Castiglione wrote in the e-mail that the “modern era of college athletics requires a new blueprint.” He cast revenue-sharing with student athletics as the primary driver for the decision.

“To that end, we are further restructuring and streamlining our staff functions so we can strategically reinvest in priority areas that strengthen the rest of our department and support all of our sports,” Castiglione wrote. “Regrettably, this action requires a limited reduction in force. This difficult decision was made with great consideration, understanding it impacts our colleagues and their families. I want you to know that I am adjusting my compensation to reflect these realities as well.”

The OU Daily report also noted that the athletic department has undergone further cost-savings this year in anticipation of sharing $20.5 million with student-athletes in the first year of the settlement, assuming its approved.

Castiglione also noted this was the only anticipated reduction in workforce.

OU plays in the SEC, perhaps the most lucrative of conferences in college athletics. The OU Daily reported the athletic department raised $110 million for 2024-25, a record. Yet, looming revenue-sharing cost roughly 15 people their jobs.

While the House settlement is expected to provide pay to thousands of student-athletes, other schools are reducing sports, too. Recently, Stephen F. Austin in Nacogdoches, Texas, announced it would no longer support four NCAA sports, including women’s bowling, which had won two national titles.  

The House v. NCAA settlement is a combination of three different cases brought by current and former student-athletes. It will allow for $2.75 billion in damages will be paid to thousands of college athletes over 10 years as part of restitution for their inability to access things like Name, Image and Likeness (NIL) opportunities.

The new settlement won’t prohibit student-athletes from leveraging NIL, but they will need to report any deals valued at $600 or more.

The settlement also caps scholarships and, in some cases, expands them for certain sports through roster limits.