There has been no character assassination of KO by the university. The notion that Kevin's current attempts to smear the university (which, ironically enough, have only served to destroy Kevin professional reputation and burn through the considerable goodwill he once had among much of the fanbase) somehow mean that it is incumbent upon the university to pay him millions of dollars to which he has no lawful claim so that he will go away (and that is, apparently, the only way to "avoid this scenario") is ludicrous.
Regarding your notion that Kevin's faith's has led him to publicly smear the university that was his home for so many years and the man he once called "a second father" and whose support "meant the world to (Kevin)", I disagree. Kevin seems locked into a path of self- destruction. His rumored lack of fidelity to his wife alleged cost him his marriage. His alienation of Jim Calhoun lost him an incredible wellspring of knowledge and support. His decision to cheat, led him to lie about his cheating, both of which cost him his job. His refusal to accept responsibility for that caused him to further alienate his contacts and fans. All of that seems less like an act of faith and more like a crisis of faith. Whatever it is, I am hopeful that he works his way through it and gets back on less self-destructive path.