Oklahoma State athletics saw revenue rise in 2024, but Chad Weiberg knows more is needed
Scott WrightThe Oklahoman
STILLWATER — With the world of college athletics in a constant state of flux, Oklahoma State athletic director Chad Weiberg decided it was an important time to address his university’s fanbase directly.
Weiberg sent an email to fans last Friday laying out the status of what is at hand for OSU — primarily from a financial standpoint.
“Oklahoma State remains determined to compete for championships in the Big 12 Conference and at the highest levels of college athletics,” Weiberg wrote. “To do so, we will need to have access to an additional $20.5 million annually.”
That’s a specific number for a specific reason.
The pending NCAA antitrust lawsuit settlement, which is expected to be finalized in early April, will open the door for athletic departments to share revenue directly with athletes up to the anticipated limit of $20.5 million annually.
In simple terms, this will allow colleges to directly pay players, getting away from the current method of using collectives that operate outside the university’s reach of control to compensate athletes for their name, image and likeness.
As part of his message to OSU fans, Weiberg addressed the university’s need to examine all of its current operating expenses with a focus on their contribution to competitiveness, recruiting efforts or revenue generation.
“We look at all of our expenses closely,” Weiberg told The Oklahoman last week. “This is looking more at the change. How is recruiting going to change? All the money that we spent in recruiting, how does that change with the portal and with revenue sharing and all the adjustments that are coming?
“How do we evolve to the new way things are happening?”
Of course, universities in the state of Oklahoma have already been given the power to pay athletes directly through the recently signed executive order by Gov. Kevin Stitt — but more on that later.
The more pressing issue for Weiberg is the source of that $20.5 million.
OSU athletics had an operating budget of just more than $122 million in the 2024 fiscal year from July 2023 through June 2024, according to their annual financial report. In that time, OSU had revenue of $123.2 million — meaning the department was roughly $1.2 million in the black.
The total revenue growth was just shy of $13 million over what the department brought in during the 2023 fiscal year. OSU reported revenue of $110,287,825 for 2023, and that grew to $123,203,642 for the 2024 fiscal year.
In addition to the $1.2 million in excess revenue, the athletic department now can access the money that has been going through the collective, Pokes with a Purpose. But even with that, the department will still be less than halfway to the $20.5 million figure.
Where will the rest of the money come from?
That’s why OSU fans got an email from Weiberg.
“As part of the Cowboy Code says: We dream as big as the sky,” Weiberg wrote. “This message is not intended as a call to arms, but as confirmation of permission for all of us who love Oklahoma State to take full control of our destiny. We have accomplished much, thanks to the hard and dedicated work of so many. However, it is accurate to believe that our best days still lie ahead, but only if we come together and seize this incredible opportunity.”
The $20.5 million for revenue sharing is not a requirement, but will essentially be necessary to keep pace with the other programs who are taking full advantage of the allowed number.
“We believe that’s what it’s going to take to remain competitive,” Weiberg said of the $20.5 million. “We believe that if we’re not maxing it, then we’re probably falling behind competitively, becxause we know there are other schools that are planning to max it.
“We have started, and will continue the process of what is it that we should be allocating differently? We clearly have to generate more revenue. Everything is on the table or needs to be on the table. We need to be thinking about that in ways differently than we have previously.”
While universities in many states must wait for the NCAA settlement to be finalized before they can begin direct revenue sharing, Stitt’s order has given state universities the ability to do so immediately.
“It doesn’t impact anything financially,” Weiberg said. “It just gives us the ability to operate in the way it’s going to be when the settlement goes into effect.”
The executive order doesn’t do anything to bring additional funding into the university, but it gives the athletic department direct control over name, image and likeness payments to athletes until the revenue-sharing model from the settlement takes over.
But as Weiberg’s email laid out, the need for additional revenue, primarily through donations and ticket purchases, is at a premium for OSU.
Not only does the university need to add $20.5 million to its annual budget for revenue sharing, but also for the typical increases in department costs, from the hiring of additional coaches to health and facilities insurance policies.
Dating back to 2022, OSU’s annual athletic expenses have increased at least $12 million per year, so a similar increase should be expected in addition to what is needed for revenue sharing.
And that’s why Weiberg saw it necessary to reach out directly to fans.
“As always, our alumni, donors and fans control our destiny,” he wrote. “Some things never change. You are our foundation.”
