Oklahoma State football coach Mike Gundy’s new contract includes higher buyout
STILLWATER, Okla. — When Oklahoma State football coach Mike Gundy agreed to a new five-year perpetual contract in October, he not only got a raise, but saw an increase in the buyout total that Oklahoma State would owe him for terminating the contract without cause.
Because the new agreement became effective July 1, Gundy is getting retroactive pay that will increase his total compensation for a contract year ending Dec. 31 to $4.875 million, not including a $171,875 reduction he agreed to take due to athletics department financial issues related to the COVID-19 pandemic. Gundy originally had been scheduled to make $4.375 million from the school for 2021.
Gundy also will be getting a $125,000 bonus for reaching a New Year’s Six bowl game. OSU faces Notre Dame in the Fiesta Bowl on Jan. 1, according to the contract obtained from an open-records request by The Oklahoman and USA TODAY Sports.
Gundy’s salary will increase by $125,000 each year that he remains under contract beginning on Jan. 1, 2022, and continue until the termination of the contract, which is a perpetual, rolling five-year agreement — meaning a year is added to the contract at the completion of each year.
Gundy originally signed a perpetual five-year contract in 2017. In the summer of 2020, Gundy agreed to have his contract reduced by one year, to a four-year, perpetual contract, and he had his salary reduced by $1 million to $4.2 million per year.
Under his previous contract, OSU’s buyout for termination without cause on Dec. 1, 2021, was roughly $7.1 million. With the length and financial terms of the new contract, as of Jan. 1, 2022, the buyout will increase from 50% of the total remaining compensation to 62.5%, meaning the buyout as of Dec. 1, 2022, would be roughly $14.7 million. It stands to increase to 75% of the total remaining compensation on Jan. 1, 2023.
This article originally appeared on Oklahoman: Contract details for Oklahoma State coach Mike Gundy released
