Mike Gundy buyout: Details of Oklahoma State head coach's contract

If Oklahoma State decided to part ways with head coach Mike Gundy following the 2025 season, the Cowboys would owe their head coach $15 million. Gundy agreed to terms on a restructured contract in December 2024 that included a $1 million reduction in salary and new buyout terms.

The new contract, which pays him $6.75 million in 2025, includes an annual raise of $125,000 per year going forward. The restructured deal runs through the 2028 season and includes brand-new buyout language. Instead of a buyout on a percentage scale, based on the remaining total Oklahoma State would owe Gundy, it moved to a flat total.

Here is a full buyout breakdown:

+ Buyout stays at $15 million after the 2026 season
+ Buyout stays at $15 million after the 2026 season
+ Buyout drops to $10 million after the 2027 season

Gundy’s previous deal called for Oklahoma State to make monthly payments if it fired the head coach. The school forced Gundy to accept a reduced salary and buyout in December, typically a signal that the school is making preparations to move in a different direction.

The $1 million reduction in salary is being reinvested into the athletic department for revenue sharing. Gundy’s new agreement also removed a perpetual five-year rollover from his deal. Gundy is also required to show an increased involvement in fundraising and donor engagement, per the contract.

Mike Gundy has over 165 wins at Oklahoma State and has coached in more than 250 games since his hiring in 2005. A former quarterback for the Cowboys, the three-time Big 12 Coach of the Year has brought the program to new heights during his tenure, including two 12-win seasons and the highest AP Poll ranking in program history.

Oklahoma State has won 12 bowl games under his watch. The Cowboys finished 3-9 in 2024 and did not win a Big 12 game. Gundy brought in nearly an entire new coaching staff this offseason.