Sources: Gundy, OSU agree to restructured deal

Oklahoma State and Mike Gundy have reached an agreement on a restructured contract, and he will remain the Cowboys’ coach, sources told ESPN on Saturday.

The two sides had discussions Friday and Saturday about a new deal after the Oklahoma A&M regents, who oversee Oklahoma State, held a special meeting Friday morning to discuss Gundy’s employment and other football staff employment matters. The meeting did not end with any resolution Friday, but board chair Jimmy Harrel told local reporters, “We have a plan.”

As part of the restructuring of Gundy’s contract, his $7.75 million annual salary will be reduced to be redistributed as part of revenue sharing with players, and his buyout will be reduced, sources told ESPN. Gundy would have been owed $25.3 million had he been fired without cause.

Sources said Gundy was already on board to give up part of his salary to help with revenue sharing but that the two sides differed initially on the amount of the salary reduction, leading to two days of uncertainty surrounding his future.

Sources told ESPN that Gundy had the support of school president Kayse Shrum and athletic director Chad Weiberg but that at least one regent was in favor of moving on from Gundy.

Gundy is Oklahoma State’s all-time winningest coach and has led his alma mater to a 169-88 record since being promoted to the role in 2004. Gundy guided the Cowboys to the Big 12 title in 2011, league runner-up finishes in 2021 and 2023, and 18 consecutive bowl appearances before this season, when he recorded his worst record at 3-9 and went winless in conference play. Oklahoma State ended its season a week ago when it fell 52-0 at Colorado.

Gundy’s previous deal was a rolling five-year contract, which extends on Jan. 1 of each year he is employed by the school.

Gundy on Wednesday fired offensive coordinator Kasey Dunn and defensive coordinator Bryan Nardo, and he had started reaching out to potential replacements when the special board meeting was called for Friday morning. Part of the conversations during that meeting centered around Gundy’s hiring of assistant coaches and whether more oversight was needed in terms of contract structure, sources said.

In 2020, Gundy agreed to a $1 million salary cut, a shortened contract and a reduced buyout following a review of the program, which came after star running back Chuba Hubbard criticized the coach for wearing a T-shirt from One America News on social media. Mike Holder, then Oklahoma State’s athletic director, said Gundy offered all the contract changes and praised the coach for doing so.

Gundy, an Oklahoma State star quarterback who became the Big Eight’s career passing leader, is a three-time Big 12 Coach of the Year with the school. His teams have had 10 AP top-20 finishes, rising as high as No. 3 in 2011, when Oklahoma State won the Fiesta Bowl. Prior to this year’s dip, the Cowboys had won 10 or more games in eight of their previous 14 seasons.

He also made several controversial statements during his tenure, including last month, when in responding to criticism of the team, he said, “Most cases, the people that are negative and voicing their opinion are the same ones that can’t pay their own bills.” Gundy later apologized for his comments.

ESPN’s Adam Rittenberg, Jake Trotter, Max Olson and Pete Thamel contributed to this report.