It seems to me after looking at everything, that maybe instead of there having to be a "bad guy" in this situation, what if there are really no bad guys here? Woody and Dane are both Alpha males, and both love the IU program, and both wanted to bring the program back to its previous success. They both have the same intentions for IU, but as is normal, they are different people with different ideas about how to accomplish the same task, and simply did not see eye to eye on how to accomplish that task, and didn't gel as co-workers. Thus Woody as the head coach, moved on from Dane, the assistant coach.
The only thing I see as wrong in this situation, is in the wording of the press release. It did not make Woody look good at all. It made Woody appear shallow, and like he was throwing Dane under the bus. Maybe Woody did not even intend for this to be the way the press release came off. The administration and media staff at IU should have ensured that the press release made Woody and Dane look good. They did not do their job in my opinion.