In the high-stakes arena of college football, success is often measured not only by victories on the field but also by the substantial financial investments made by institutions. Ohio State University (OSU) exemplifies this dynamic, particularly in its commitment to head coach Ryan Day. In February 2025, OSU extended Day’s contract through the 2031 season, elevating his annual salary to $12.5 million, making him the second-highest-paid coach in college football, trailing only Georgia’s Kirby Smart.
This significant financial commitment underscores OSU’s dedication to maintaining its status as a powerhouse in college football. However, such investments come with inherent risks and broader implications for the university’s athletic department and its stakeholders.
Ryan Day’s Tenure and Achievements
Ryan Day assumed the role of Ohio State’s head coach in 2019, following a brief stint as the acting head coach in 2018 during Urban Meyer’s suspension. Since taking the helm, Day has compiled an impressive record, leading the Buckeyes to a national championship victory over Notre Dame in January 2025, marking the program’s first title since 2014.
Under Day’s leadership, the Buckeyes have consistently been contenders on the national stage, securing multiple Big Ten championships and maintaining a dominant presence in the College Football Playoff (CFP) landscape. His coaching prowess and ability to recruit top-tier talent have been pivotal in sustaining Ohio State’s football excellence.
The Financial Landscape of Ohio State Athletics
Ohio State’s athletic department operates on a substantial budget, reflecting the scale and ambition of its programs. In the 2023 fiscal year, the department reported record revenue of approximately $279.5 million, an 11% increase from the previous year. This surge was primarily attributed to increased football ticket sales, with the program generating over $127 million and a surplus of $55 million.
However, the financial landscape is not without challenges. In the 2024 fiscal year, the athletic department faced a $37.7 million deficit, with total operational expenses reaching $292.3 million. Factors contributing to this shortfall included a reduced number of home football games, which impacted ticket revenue.
The Economics of Coaching Contracts
Investing in high-profile coaching talent is a common strategy among elite college football programs aiming to achieve sustained success. Ryan Day’s contract extension, valued at $12.5 million annually, positions him among the highest-paid coaches in the sport. The deal includes significant buyout clauses, with an $11.5 million school buyout per remaining year and a $6 million coach buyout, along with performance-based incentives that could add up to $1.55 million annually.
These financial commitments are designed to secure coaching stability and deter potential interest from NFL teams, a pertinent concern given Day’s previous experience in the professional ranks. The substantial investment reflects the university’s confidence in Day’s leadership and its prioritization of football excellence.
Balancing Success and Financial Sustainability
While the pursuit of championships is a primary objective, it is essential to consider the broader financial implications of such substantial investments. The athletic department’s recent deficit highlights the delicate balance between investing in top-tier talent and maintaining fiscal responsibility.
Football and men’s basketball are the primary revenue-generating sports at Ohio State, often subsidizing other athletic programs. In the 2023 fiscal year, these two programs were the only ones to generate more revenue than expenses, underscoring their critical role in the department’s financial ecosystem.
The reliance on football revenue accentuates the importance of on-field success, as performance directly influences ticket sales, merchandise, and broadcasting deals. Consequently, investing in a high-caliber coach like Ryan Day is viewed as a strategic move to ensure continued competitiveness and financial viability.
The Broader Implications
The escalating salaries of college football coaches have sparked discussions about the broader implications for universities and their stakeholders. Critics argue that such investments may divert resources from academic initiatives and contribute to an arms race in collegiate athletics.
However, proponents contend that a successful football program enhances the university’s brand, increases alumni engagement, and drives overall enrollment, thereby generating benefits that extend beyond the athletic department. The visibility and prestige associated with a championship-winning team can have a profound impact on the institution’s profile and financial health.
The Financial Risks of Ohio State’s Championship Pursuit
While Ohio State’s investment in Ryan Day signals a commitment to maintaining its elite status, it also comes with considerable financial risks. Coaching contracts of this magnitude can become a financial burden if on-field results do not align with expectations. The pressure to deliver championships year after year is immense, and failure to meet these expectations could lead to expensive buyouts, as seen with other major programs like Texas A&M, which paid nearly $77 million to part ways with Jimbo Fisher in 2023.
Ohio State’s financial commitment to Day is structured in a way that ensures both stability and security for the program, but the economic landscape of college athletics is volatile. The revenue that sustains such investments is dependent on continuous success, including conference titles, playoff appearances, and national championships. If the program were to experience a downturn, it could face financial strain, especially if combined with declining ticket sales or reduced media rights revenue.
The Role of Boosters and External Funding
Much of Ohio State’s ability to offer lucrative coaching contracts stems from its extensive booster network and donor contributions. The Buckeye Club and other major donor groups contribute substantial funds to ensure the program remains competitive in recruiting, facilities, and coaching salaries. Private donations often supplement the athletic department’s budget, allowing the university to invest in high-caliber talent without directly impacting academic funding.
However, this reliance on booster contributions also creates expectations. Major donors who invest millions in the program anticipate returns in the form of championships and national prominence. If the team fails to meet these standards, booster support can wane, affecting the program’s ability to sustain its financial commitments. Maintaining strong relationships with influential donors is therefore critical to ensuring the long-term financial health of the athletic department.
NIL and the Changing Landscape of College Football
The introduction of Name, Image, and Likeness (NIL) deals has fundamentally altered the financial dynamics of college football. Top programs like Ohio State must now compete not only in coaching salaries but also in NIL compensation for players. The Buckeyes have been aggressive in leveraging NIL opportunities to attract top recruits and retain key talent, but this requires significant financial backing from external collectives and sponsorship deals.
As NIL becomes a central factor in recruiting, universities must balance investments in coaching with investments in player compensation. Programs that fail to offer competitive NIL deals risk losing top prospects to rival schools with stronger financial backing. This places additional financial pressure on Ohio State’s athletic department to ensure it remains a top destination for elite recruits.
Media Rights and Future Revenue Streams
Another key factor in Ohio State’s financial equation is its media rights deal with the Big Ten Conference. The conference’s landmark $7 billion media rights agreement with Fox, CBS, and NBC ensures a steady revenue stream for member schools, with each university projected to receive upwards of $80 million annually. This financial windfall helps offset the costs of major coaching contracts and facility upgrades.
However, as streaming services become more influential in sports broadcasting, the landscape could shift. If traditional television revenues decline, schools may need to explore alternative revenue sources, such as direct-to-consumer streaming subscriptions or expanded international broadcasting rights. Ohio State’s ability to adapt to these changes will be crucial in maintaining its financial stability.
The Pressure of Sustained Excellence
Ryan Day’s contract extension is not just about securing a coach—it’s about setting expectations for Ohio State’s football program. The Buckeyes are expected to compete for national titles every year, and anything less is considered a disappointment. With this level of investment, the margin for error is razor-thin. A single subpar season can lead to scrutiny from fans, media, and donors alike.
Additionally, the competitive landscape of college football continues to evolve. Programs like Alabama, Georgia, and Michigan are constantly reloading with top-tier talent and elite coaching staffs. The College Football Playoff’s expansion to 12 teams in 2024 provides more opportunities to compete for a championship, but it also raises the stakes—failure to reach the playoff could be seen as unacceptable given Ohio State’s investment in Day.
Long-Term Implications for Ohio State and College Football
Ohio State’s decision to commit $38 million to Ryan Day over the next three years sets a precedent for the future of college football coaching salaries. As programs continue to escalate their financial commitments to retain top coaches, the arms race in collegiate athletics intensifies. This could lead to further disparities between elite programs and smaller schools, making it increasingly difficult for lower-budget programs to compete at the highest level.
Moreover, the growing financial stakes in college football raise questions about the long-term sustainability of these investments. Will universities continue to justify multimillion-dollar coaching salaries if economic conditions change? Could future legal or regulatory changes impact the structure of coaching contracts and athletic department funding? These are critical considerations as the sport continues to evolve.
Conclusion: Is the Gamble Worth It?
Ohio State’s $38 million wager on Ryan Day is a bold statement of intent. The university is fully committed to maintaining its position as a national powerhouse, and it is willing to invest heavily to ensure continued success. However, with great investment comes great risk. The financial sustainability of such commitments hinges on sustained on-field excellence, strong donor support, and adaptability to an evolving college football landscape.
If Day continues to deliver championships and playoff appearances, this investment will be viewed as a resounding success. If not, Ohio State could find itself facing difficult financial decisions in the years ahead. One thing is certain: in the high-stakes world of college football, the cost of winning has never been higher.