OU Athletics lays off employees amid shift to athlete revenue sharing

The University of Oklahoma athletics department laid off 5% of its workforce this week as part of a broader restructuring effort, OU Athletics confirmed to News 9 and News On 6 Friday.

In a statement, OU Athletics said the move was part of a months-long effort to reduce costs and realign resources amid a rapidly evolving college sports landscape.

“OU Athletics’ long-held tradition of excellence requires us to think strategically on and off the stage of competition. In today's dynamic intercollegiate athletics environment, it is essential we continually consider how to position ourselves for future and sustained success. For the last nine months, the athletics department has reduced significant costs as well as restructured and streamlined the organization to ensure resources are strategically reinvested in priority areas. Part of that work included a staffing review, resulting in a 5% force reduction. As always, OU Athletics will continue to pursue every avenue to strengthen all sports programs and create even more opportunities for student-athletes.”

A source confirmed to News 9 and News On 6 that an email was sent to employees earlier this week notifying them of the layoffs. The email stated the changes are intended to align the department with the shifting landscape of college athletics, including the rise of revenue sharing with student-athletes.

OU Athletics Director Joe Castiglione is also adjusting his compensation in response to the changes, according to the email.

CBS Sports reports that in a separate letter to Oklahoma fans in February, Castiglione outlined the university's plan for the new revenue-sharing model, stating the department would allocate the maximum $20.5 million in athlete compensation starting July 1, highlighting the financial adjustments required to meet these new obligations.

The House vs. NCAA settlement arose from a landmark lawsuit challenging the NCAA's restrictions on athletes profiting from their name, image, and likeness (NIL). A federal court ruled those restrictions violated antitrust laws, prompting the NCAA to implement a revenue-sharing framework. This shift represents a historic change in college athletics, requiring all schools, even the big-name universities like Oklahoma, to restructure their budgets and staffing to accommodate direct compensation for athletes. An approved settlement from Judge Claudia Wilken has been delayed over multiple issues but is expected to be agreed upon in the coming days. 

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