OU confirmed to the OU Daily late Thursday what athletic department employees learned via a mass email Wednesday: The university is laying off employees due to the looming realities of starting to share revenue with athletes.
According to the email, which was shared with the Daily by an equipment manager, athletic director Joe Castiglione wrote that OU has reached a critical moment that requires the department to restructure its staff functions, resulting in a “limited reduction in force.”
“This difficult decision was made with great consideration, understanding it impacts our colleagues and their families,” Castiglione wrote.
Email from OU athletic director Joe Castiglione.
Mike Houck, an associate athletic director, wrote Thursday in an email to OU Daily that 5% of 302 full-time, non-student department employees would be cut. That equates to approximately 15 positions and follows what Houck described as significant cost-cutting over the past nine months.
In the email to staffers, Castiglione wrote that he was adjusting his compensation in light of the cuts. Houck declined to specify to the Daily Castiglione’s prior or new salary, saying those would be available only through an open-records request.
“This is the only expected reduction in force for our department,” Castiglione wrote in the email. “We remain steadfast in our commitment to you and to the mission that drives us: serving our student-athletes and representing the University of Oklahoma with pride and integrity.”
The equipment manager who shared the email with the Daily said Castiglione also sent an email to all athletics employees in March announcing a restructuring of the department, some of which moved extra responsibilities to students.
Email from OU athletic director Joe Castiglione.
Revenue-sharing, student compensations
On Feb. 19, Castiglione wrote in a public letter to fans saying that OU planned to share the maximum allowed annual revenue of $20.5 million starting July 1 following the “expected approval” of House v. NCAA, an ongoing $2.8 billion class action lawsuit settlement that would enable universities to pay athletes a portion of their media revenues.
According to the letter, OU plans to use the $20.5 million to reallocate existing funds and evaluate future ticket pricing and premium offerings across all sports. Castiglione said then that there would be new parameters for name, image and likeness after July 1 and that providing financial support would be the university’s primary competitive edge in recruiting and maintaining student-athletes.
In January, Gov. Kevin Stitt issued an executive order allowing institutions to direct payments to athletes for NIL purposes without using taxpayer money.
Recent coaches salary raises, department finances
According to the 2023-24 OU athletics annual report, the department raised $110 million in donations, surpassing its $109 million raised on 2022-23.
On March 10, OU Board of Regents approved the new or increased salaries for several key staffers, including new inside linebackers coach Nate Dreiling, new general manager Jim Nagy, as well as returning safeties coach Brandon Hall and volleyball head coach Aaron Mansfield.
Dreiling will receive a base salary of $285,000, an additional $165,000 annually for athletics-related events and activities and a $90,000 bonus if the team wins the national championship. Nagy’s base salary will be $300,000 with an additional $450,000 annually for athletics-related engagements and activities. He will receive a raise to $550,000 in February 2026 and an increase to $650,000 in February 2027.
While Hall’s base salary of $285,000 remains the same, his income from athletic-related activities increased from $215,000 to $415,000.
Mansfield’s contract increased to $245,000 and will increase by an additional $5,000 each contract year through Jan. 31, 2029. His outside income from athletic-related engagements and activities increased to $55,000 and will increase $5,000 each contract year.
In June 2024, the board also approved:
• A six-year, $51.6 million contract for football head coach Brent Venables, which included an annual $8.6 million and $600,000 toward retirement;
• A $625,000 contract for women’s basketball head coach Jennie Baranczyk;
• An $100,000 increase in additional and outside income for men’s basketball head coach Porter Moser;
• And an annual $1 million contract for women’s gymnastics head coach K.J. Kindler.
