Before this goes off on a tangent I will lead with a) I believe the school will replace KO this ofseason and b) I believe this is the correct move.
I've seen enough over the years to realize that in order for the current investigation to be used against KO at the time we would want to dismiss him (April, not July), the results would need to come oiut very soon. I don't see in any way, judging from experience with the NCAA that the results will be announced in any real time,and even if they were, there still would be the appeals process.
What you are suggesting is basically bluffing in a high stakes poker game where all the cards are facing up.
I don't know what KO's thought process is but there are a number of cases (Pappas at UMass, Ruland at Iona) where coaches negotiated down the total balance of a contract to delays getting fired, all on the belief in their abilities, feeling the additional year would prove they were worth keeping (those two failed but Tom Coughlin,after the 2006 seasondid the same and ended up winning the super bowl).
If you want to guaranty that KO remains for another year your approach will work.