After months of disappointing losses and shattered NCAA Tournament hopes Hoosiers fans will get to see Mike Woodson’s time as head coach come to an end. The Indiana legend, at 66, will reportedly retire after this season and conclude a four-year episode of long struggle stretches. Yet this is not the clean break it seems thanks to the $8 million buyout that has people buzzing.

Woodson’s contract, which was renegotiated just last year, has a significant buyout clause. If Indiana were to fire him, they’d need to pay the full remaining balance—around $8 million. Thankfully (or perhaps not), the university can pay this off in $1 million annual installments. But this setup has raised questions. Why hasn’t Indiana moved on from Woodson sooner? The money, of course, plays a big part in that decision.

As Jacob Goins, host of Locked On Hoosiers, pointed out, the situation is a bit of a head-scratcher: “My question though is why wait? You’ve got an $8 million buyout. If Indiana fires him, they’ve got to pay it all. Maybe they’re trying to solve this thing nicely.” 

When Woodson was hired back in 2021, it seemed like a perfect fit for the Hoosiers. He was coming off as an assistant coach to the New York Knicks, following his role as a coach for 6 more NBA teams. There was a tone of eagerness and respect when Director of Athletics Scott Dolson had made the announcement. “As one of our program’s legendary players, Mike certainly gives us a bridge to our past… I’m thrilled about what this day means for our program,” were his words.

What transpired next, however, did not meet their goals. The Hoosiers have failed to make it to make it to Sweet Sixteen even once under the HC and are likely to be missing out on the NCAA tournament appearance for the second consecutive time. So while the recent announcement was a foreseen sight, Goins believes there is still mutual respect there that hasn’t let both parties escalate things.

“Maybe Indiana is trying to take care of Mike Woodson, and maybe Mike Woodson is trying to take care of Indiana. Maybe they don’t want to put the ‘fired’ label on it,” the host continues. Obviously, both sides are treading treacherous territory, looking for a way to split without a mess.

Retirement is a chance for Woodson to go out on his own terms and still be remembered as a beloved alum. For Indiana, it avoids the bad optics of letting go of a program icon while keeping the financial blow a little softer. At least in theory, this mutual understanding is beneficial for both sides.

Mike Woodson, 66, seems to be leaning toward stepping away for good rather than looking for another coaching gig elsewhere. For Indiana, Woodson’s voluntary resignation would save them from the negative publicity of a firing. Also, it could even reduce the overall financial cost. For Woodson, retiring allows him to preserve his legacy as a respected figure in Indiana basketball history.

Mike Woodson’s departure after a disastrous campaign

The Mike Woodson’s decision comes after a particularly rough 2024-25 season. In which Indiana’s preseason ambitions of being a top team were dashed in spectacular fashion. Despite landing top transfers like Oumar Ballo from Arizona and Myles Rice from Washington State, the Hoosiers fell apart under Woodson’s watch.

They went 0-10 against ranked teams in the last two seasons. And their latest late season collapse, including losing six of their last seven, ensured no NCAA tournament berth again.

With Woodson’s departure essentially assured, Indiana is about to go on its third coaching hunt in the last decade.  Possible replacements include Dusty May, the Michigan head coach who once worked as an Indiana student manager. Chris Beard, the head coach at Ole Miss and a disciple of Bob Knight, and TJ Otzelberger, the rising star and head coach at Iowa State.

The Hoosiers haven’t won a national title since 1987, and their last Big Ten championship was in 2016. This saga is just another chapter in the story of a proud program trying to get back to its former glory. Now with a new coach probably on the way, Indiana will need more than a new face to climb back onto track. They’ll need a plan that can help them reclaim their perch in the school basketball powerhouses.