Sean Sutton will receive a one-time payment of $300,000 and then $2.4 million over 10 years as part of a final compensation agreement between the former Oklahoma State men's basketball coach and the university.
Details of the agreement were obtained by The Oklahoman through an open-records request.
The $2.7 million will be paid from OSU athletic department funds and does not involve any state-appropriated money. The agreement is contingent upon approval from the OSU Board of Regents.
The agreement was different than what was originally outlined in Sutton's employment contract. OSU and Suttton mutually agreed to delete a clause in that contract that would have caused him to forfeit any compensation owed him by OSU should he land another position.
"We wanted to recognize the 17 years of service Sean Sutton rendered to the OSU program as a player, assistant coach and head coach," OSU Director of Communications Gary Shutt said in a statement.
"We thought Sean's contract negotiated when OSU named him head coach designate was too constraining on him and his family. We wanted to be as fair as possible.
"While this situation has been very difficult, we appreciate the constructive way in which Sean Sutton and Mike Holder developed and structured this agreement in the best interest of everyone."
Read the agreement between Sean Sutton and OSU