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Mike Gundy Contract & Buyout Breakdown at Oklahoma State

Gundy and Oklahoma State have enjoyed 17 consecutive winning seasons. Boardroom looks at the Mike Gundy contract ahead of the Guaranteed Rate Bowl.

When you think about fixtures in Big 12 football, Mike Gundy at Oklahoma State has to be near the top of the list — even if you only think of him as the guy who at one point was 40.

He took over the job in Stillwater in 2005 and went 4-7 in his first season. The Pokes haven’t had a losing record since. Oklahoma State has been to 17 straight bowl games, including Fiesta Bowl victories in 2011 and 2021. This year, the Cowboys had a bit more of an uneven season, going 7-5 overall and 4-5 in the Big 12. But that’s good enough to go bowling, and Gundy will lead his team into battle against Wisconsin in the Guaranteed Rate Bowl on Tuesday.

It shouldn’t be a surprise that the longest-tenured coach in the Big 12 is also the highest-paid. But how much exactly will Gundy earn each season? What about when you factor in bonuses? Boardroom dives into the Mike Gundy contract.

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Mike Gundy Contract and Salary Breakdown at Oklahoma State

Signed: Feb. 25, 2022
Term: Perpetual five-year contract (one-year extension automatically added after each season)
2022 Base Salary: $500,000

Gundy’s base salary did not change with the extension he signed in February 2022, but he did get a hefty bump in supplemental compensation, paid out as part of his talent and personal services pay. That number increased from $4,275,000 to $5,400,000. He will also receive an annual raise of $125,000 as part of that deal.

In addition, Oklahoma State will pay him a $1,000,000 retention bonus every June, simply for still being employed in Stillwater. Finally, the university will contribute $600,000 a year to a retirement fund for Gundy. In total, this brings Gundy’s 2022 compensation up to $7,500,000 before factoring in any performance bonuses.

Knowing Gundy has a perpetual five-year deal with annual raises, here is what he’s set to make, this year included:

  • 2022: $7,500,000
  • 2023: $7,625,000
  • 2024: $7,750,000
  • 2025: $7,875,000
  • 2026: $8,000,000

Add it all together and that brings the total current value of Gundy’s contract up to $38,750,000.

For added context, here’s how his 2023 pay compares to other college football coaches whose contracts Boardroom has analyzed so far this season:

*coach has since been fired

Mike Gundy Buyout Details

Unlike most contract buyouts, Gundy’s actually increases over the next few years. As of this very moment, Oklahoma State would owe Gundy 62.5% of the total base pay, talent fee, and retirement contribution remaining on his five-year contract, which comes out to a $21,531,250 buyout. But that number is about to change. On Jan. 1, 2023, his buyout will increase to 75% of that total, or $25,837,500. The buyout will remain at 75% for the duration of Gundy’s deal, and because his salary gets a $125,000 bump every year, the total cost of firing Gundy without cause will increase as well.

There is, of course, another side to this. Gundy could choose to leave Oklahoma State for another opportunity. As of today, that would cost him (or his new employer) $5,000,000 to terminate his contract, but that will increase to $6,000,000 on Jan. 1, where it will remain for the duration of the deal. There is one caveat: If Gundy decides to leave after the university has decided to stop renewing his contract every year, then the buyout is knocked back down to $5,000,000.

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Potential Bonuses

Gundy has a relatively simple bonus structure, but it’s still set up to give him plenty of extra money if the Cowboys reach the postseason.

If Oklahoma State does not make the College Football Playoff

In the event that the Cowboys have a good year but do not reach the College Football Playoff, Gundy can still benefit in the following ways:

  • If Oklahoma State makes a non-New Year’s 6 bowl game, Gundy will earn a bonus the equivalent of 1 1/2 months of his base salary ($500,000). That’s exactly what the Pokes did this year, going 7-5 and reaching the Guaranteed Rate Bowl. For his efforts, that comes out to a $62,500 bonus.
  • If Oklahoma State makes a New Year’s 6 bowl game or plays in the conference championship game, the above payment is replaced with a $125,000 bonus.
  • In the event that Oklahoma State wins the conference championship game, finishes first in the conference, or is selected for the College Football Playoff, the above payment is replaced with a $150,000 bonus.
  • The above bonuses are not cumulative, meaning Gundy can only earn one in a given year. He can, however, earn an additional $350,000 if the Pokes reach the national title game OR an additional $750,000 if they win the whole thing.

Additional Perks

Aside from his pay — guaranteed and otherwise — Gundy is entitled to the below perks:

  • Use of an automobile on loan from the university with an accompanying gas credit
  • Use of a “Party Suite,” which comes with up to 25 tickets, for every football home game
  • A complimentary membership, including fees and dues, at the Karsten Creek Golf Club
  • Four 100-level tickets for all men’s basketball home games

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About The Author
Russell Steinberg
Russell Steinberg
Russell Steinberg is an editor and writer at Boardroom. He came to the brand in 2021 with a decade of experience in sports journalism, primarily covering college basketball at SB Nation as a writer, reporter, and blog manager. In a previous life, he worked as a social media strategist and copywriter, handling accounts ranging from sports retail to luxury hotels and financial technology. Though he has mastered the subtweet, he kindly requests you @ him next time.