The repercussions of an ever-changing landscape in college athletics continue to grow.
OU Daily reported Thursday that the outlet obtained an email from Oklahoma athletic director Joe Castiglione informing employees in the athletic department that there would be "further restructuring and streamlining our staff functions so we can strategically reinvest in priority areas that strengthen the rest of our department and support all of our sports. Regrettably, this action requires a limited reduction in force."
Castiglione did not dare type the dreadful word, but there will be layoffs throughout OU's athletic department in preparation of looming revenue-sharing with athletes as universities will soon directly pay athletes for the first time.
OU athletic department laying off 5% of employees
Associate athletic director Mike Houck told OU Daily that 5% of OU's 302 full-time, non-student employees will be cut. According to OU Daily, that's about 15 jobs.
In the email, Castiglione also informed employees that he will be "adjusting my compensation." According to Sportico, Castiglione's most recent total compensation was $1,933,333. That was the fifth-largest total compensation among all athletic directors that Sportico listed. His base salary of $450,000 is nowhere near the top, but he gets $1,483,333 from "other university compensation," according to Sportico.
“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.”
These 15 erased positions come as the athletic department will essentially take on hundreds of new employees overnight on July 1 as every athlete will get compensated from the university if everything is approved. Castiglione has already announced that OU will share the maximum allowed annual revenue of $20.5 million, as has most major universities and will be required to compete nationally.
Another new requirement for athletic departments to keep up is a whole new staff to handle this unknown NIL environment, including general managers for football. The Sooners hired Jim Nagy as their new GM. Nagy will make $750,000 for the 2025 season, then the salary will increase by $100,000 each season. On top of that, Nagy has been assembling an entire front office staff.
As of now, OU coaches aren't taking a paycut. In fact, most college coach's salaries increase each year and it almost costs even more to fire them. According to USA Today, football coach Brent Venables is the highest-paid coach at OU with a total pay of $8,150,000 in 2024. That would also make Venables the highest-paid state employee in Oklahoma. The rest of Venables' staff is also handsomely compensated. And that also doesn't include recruiting costs that keep drastically rising.
However, football and sports in general are OU's moneymaker, so it's a beast that must be fed. And OU isn't the only university making cuts during this changing time. Many have cut non-revenue sports and some will also have to unfortunately follow OU in laying off employees.
Sports is the biggest business in the world, and business comes down to money. That's now the case for college athletics more than ever with athletes getting paid and universities just following the money regardless of tradition, rivalries and geography.
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