Why did Oklahoma lay off athletic staff? Looking at repercussions of revenue-sharing model 

The University of Oklahoma is undergoing massive restructuring and it comes at the cost of laying off 5% of its workforce this week. The move comes in the wake of the evolving college sports landscape and now the university is moving toward implementing a revenue-sharing model with student-athletes.

The University of Oklahoma said as much in its statement released this week, which reads as follows:

“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.”

One of the reasons behind the move is the landmark House v. NCAA settlement. The settlement challenges previous NCAA restrictions on athletes profiting from their name, image, and likeness (NIL), leading to college programs adopting a revenue-sharing framework.

What are the repercussions of revenue sharing model after Oklahoma's latest move?

Starting from July 1, the University of Oklahoma has pledged to allocate up to $20.5 million annually for athlete compensation. Such money will require cost-cutting measures from within, which means staff reductions.

They say the charity begins from the top and as such, Athletic Director Joe Castiglione's salary will also be adjusted in the wake of this shift. Moreover, tighter budget allocation will be realized across non-revenue sports, administrative positions, and facilities.

The 5% reduction might just be the tip of the iceberg. More such staff reduction moves like hiring freeze and reduced compensation are expected.

Under such circumstances, wealthier programs in power conferences (like the SEC and Big Ten) will likely thrive under the new model. They can weather this storm thanks to their enormous funding as compared to mid-major and Group of Five schools.

Another aspect of it will hit non-revenue generating sports. Basketball and football attracts a lot of revenue while smaller sports like tennis, gymnastics, or track and field may necessiate a stop at number of scholarships being awarded to athletes in those sports.

It's a shift in college sports entirely which could see grassroot level changes in every bit of administrative work.