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I only wonder, how can you possibly conduct a search when:
1. Your interim coach is still recruiting for the school (I assume Ollie will be allowed to recruit during the search)
and...
2. Will Ollie be part of the search, because if he is, some candidates will surely not want to be associated with it when you have an inside person being considered.
Manuel will have to say, at some point, that Ollie is not being considered for the position. That has happened in these situations before. I know the PSU case is totally a wildcard, but the people there said this to Tom Bradley and then announced it long before the Sandusky case broke. It's not unusual to tell an interim coach he won't be considered for precisely these reasons. You want to attract the best candidate pool possible.
It is difficult. But schools recruit new coaches over their current coach all the time.