Another college football coach has been given the boot, joining the quickly growing list of dismissed personnel this season. Oklahoma State’s Mike Gundy has been fired after years as HC. The Cowboys’ top brass took the drastic step after they faced a disappointing 12-19 loss to Tulsa. In the last two years, Mike Gundy seemed to have spiralled into despair at Oklahoma State, forcing him to enter into a new contract in 2024. Here’s a look at his buyout at OSU.

In 2023, Gundy led Oklahoma State to the Big 12 Championship Game. From, there, he dropped to 3-9 – his career worst. That season marked the first time in 30 years that the Cowboys went winless in the season. The disappointing turn of events led to Oklahoma Stat and Gundy entering into a restructured contract, that involved a pay cut, and new buyout terms. This season, calls to fire him grew louder after Oregon thrashed OSU in a 63-7 win, and Tulsa planted a flag in Stillwater for the first time.

Navigating Gundy’s departure was very tricky for Oklahoma State. Firing him and his staff would account to nearly 24 million, that is 23% of the school’s annual athletics revenue ($104.4 million). However, the tough call came after the former HC’s production became intolerable.

Mike Gundy’s Restructured Contract With Oklahoma State (Dec 2024)

The restructured contract, that ran till 2028, stated that Gundy’s salary for the year will be brought to $6.875 million. It also mandated that automatic rollover provision will no longer be applicable. It also brought down his contract duration to 4 years. Gundy also saw a cut in his annual raise, which was now set at $125,000 a year. Oklahoma State decided to keep him on after the disappointing 2024 turnout, since he is the program’s winningest coach.

Since he took charge in 2005, Gundy had always delivered winning seasons till 2023. The restructured contract was a means for the management to retain the veteran coach for his contribution, but also keep him on a check in case he became a bigger liability. “It will act more like what you would probably refer to as a ‘normal’ contract,” AD Chad Weiberg said when these new changes were announced.

Buyout Terms: Flat-Rate vs. Percentage Model Under Mike Guundy’s Deal

Mike Gundy’s previous contract had the normal trend of a percentage of his salary being used as buyout. Per the old terms, the former HC was owed a share of his remaining pay. That could have amounted to over $25 million. The new deal, however, mentions a crystal-clear, flat buyout sum for Gundy. If he was fired without cause on or before December 31, 2027, he would’ve been owed $15 million. If the call was made after the set date, the buyout dropped to $10 million.

The new clause gave Oklahoma State more control over the finances. Mike Gundy was initially under a rolling, 5-year contract with OSU. It made it difficult for OSU to part ways with him, as the deal would renew itself after the previous edition lapsed. Gundy wad essentially ‘unfireable’ under the old deal.

Current Figures: What OSU Will Pay Mike Gundy After 2025 Firing

Oklahoma State fired Gundy much before the 2027 deadline. That means, the former HC will be owed a sum of $15 million. Though the figure is clear, how that $15 million will be delivered to Gundy are yet to be made public. OSU can send phase it out in payments until the full amount is sent. The call was made early in the season, with Oklahoma State being just 3 games into the season. The athletics department didn’t even wait for Mike Gundy to even began conference play, that is set for Baylor on September 27.

Implications for Oklahoma State and Mike Gundy’s Legacy

Gundy will be packing his bags with a brilliant legacy to look back at, except for the last two years. He brought a Big 12 title to Stillwater in 2011, but couldn’t go beyond that milestone. In his 20+ years of service, he made the trip to the conference championship game 4 times. But a winless run in the conference in 2024 rocked the whole program to the ground. The last time this happened in Oklahoma State was in 1991. The program accepted 2024, but going 1-2 in 2025 ultimately brought on the unfortunate call.

Mike Gundy had also grown to become a little controversial during the season, as he made some eye-catching comments. It caused donors to become frustrated, throwing the management into alarm. The new contract was essentially designed to control Gundy better, but still honored him for his long career.

Final Takeaway: OSU’s Smart Move Sets New Precedent

Oklahoma State is now tasked with marking a new chapter after Mike Gundy. 2024 proved that he was no longer the dominating force he was in the conference all this long, and some new measures needed to be deployed. It helped Oklahoma State be in a better position for when the time came to fire Gundy. There are a number of programs that are running out of patience for the success of their current head coaches. OSU’s smart planning can help them in the future as well.

The management will now have to go along with an interim head coach for the rest of the season, which still has a lot left to be done. The Cowboys top brass have to pick a strong successor for Mike Gundy, who was instrumental in shaping the program. He leaves with a final record of 170-90, and as an icon for Cowboys fans.