I don't know and don't care if Calhoun was in on it, or the school was. Whoever took the steps necessary to save the program by allowing it to remove Ollie acted in the interest of UConn, the program and its fans. As one of the people in the latter group, I can only say...thanks. I'll gladly cheer an athletic department holding to the letter of a bad contract they entered into .
The moral and ethical thing here would be for Ollie to say: "I have been derelict in my duties, have failed to perform them to the best of my abilities, and I therefore will resign, and will not seek to obtain payment for services I will no longer render."
Now that would be a classy move. If Ollie wanted to be respected despite his failures, that's how he could have done it. His prospects for future employment would be much, much stronger.