CSU men's basketball coach Larry Eustachy resigns, agrees to settlement

CSU put an end to the drawn-out process of replacing its men’s basketball coach on Monday by reaching a resignation settlement with Larry Eustachy, one of the winningest coaches in school history.

The coach will remain on paid administrative leave as a "special assistant to the athletic director," according to the wording of the amended employment contract, through June 30, when his resignation becomes effective, and will receive three payments of $250,000 over the next two years.

The terms of the resignation agreement, which was provided to the Coloradoan by CSU upon request Monday night, prevent either party from making any comments which disparage or reflect negatively upon the other.

It also allows Eustachy to resume contact with the players, their parents, assistant coaches and other staff members in the program, which he had been prohibited from doing since Feb. 3, when he was first placed on administrative leave, "in a manner that does not materially interfere with (the) university's interests and operations."

The agreement, signed Monday by CSU President and Chancellor Tony Frank, athletic director Joe Parker and Jason Johnson, the chief legal counsel for the Colorado State University System, includes a provision that the university and Eustachy "shall issue a joint press release announcing Eustachy's new role described herein."

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In that release, Eustachy said: "It has been an honor and a privilege to serve as Colorado State's men's basketball coach the past six seasons. The players, fans and administration, including President Tony Frank, have made my time in Fort Collins an incredible experience.  I am extremely grateful for my time here – there are so many positive memories I will take with me.

"At the end of the day, it is time for me to step aside and allow Colorado State to open a new chapter of Rams basketball. Likewise, this also gives me a chance to hit the reset button and then put all my energy into future opportunities. As hard as it is to step away from these players and my staff, it is the right decision at the right time for all concerned."

Eustachy, 62, was under investigation for alleged abusive behavior to players and staff, the second time he was investigated for such actions by CSU in his six years as coach. Under investigation since late January, Eustachy was placed on paid administrative leave Feb. 3 based on information that had been gathered by Parker and others during what the university called a “climate assessment.”

Eustachy was under contract through the 2020-21 season and would have been owed his annual salary of $1.04 million for three years if he were fired without cause.

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The contract amendment was agreed to by Eustachy and Parker, and was finalized Monday. As a result of Eustachy's decision to resign and amend his contract, there were no final conclusions or recommendations associated with the assessment, CSU said in the news release.

"I am grateful for the contributions Coach Eustachy has made to the Colorado State men's basketball program and for the time we have worked together," Parker said. "In turn, I understand and support Larry's interest to shift his energy toward opportunities beyond his tenure at CSU."

Parker acknowledged Jan. 31 that he and others on his staff, later identified as deputy athletic director Steve Cottingham and NCAA compliance director Shalini Shanker, were conducting individual interviews with players and staff members of the men’s basketball program.

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Steve Barnes, a longtime friend of Eustachy and assistant coach under him at five different schools, was put in charge of the program on an interim basis when Eustachy was placed on leave. Barnes was also placed on paid administrative leave Feb. 10 because of concerns raised by players — who two days earlier boycotted a practice — and others.

Jase Herl, a second-year assistant, coached the Rams (11-19, 4-13 Mountain West) in their past four games, including a Feb. 10 win over San Jose State that snapped a seven-game losing streak. He was named the program’s interim coach two days after that victory, a school spokesman said.

Barnes, Herl and the other members of Eustachy's staff, including assistant coach Willie Glover and director of player personnel Pierce Hornung, will be retained through June 30, when their contracts expire, which is customary during coaching changes, Parker said.

CSU will continue to pay Eustachy his annual salary of $985,012 in monthly installments through June 30, under terms of the agreement. Additional payments of $250,000 apiece to the coach will be made July 1, 2018; Jan. 1, 2019; and March 1, 2019.

Eustachy has not responded to requests for comment.

The latest investigation into Eustachy's behavior, sources said, stems from complaints made by the parent of a player and prominent booster after Eustachy launched a profanity-filled verbal attack at a player during a timeout in a Jan. 17 home game against Air Force. The coach’s comments were audible to fans sitting behind the CSU bench — including two prominent boosters who got into an argument with Eustachy at the time — and to those watching the game online across the country.

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CSU also conducted an investigation into the program and conduct of Eustachy during the 2013-14 season. That investigation was conducted by then-AD Jack Graham, who hired Eustachy; then-deputy AD John Morris; and Cottingham, a CSU senior associate AD at the time. The investigation ended with a recommendation that the university fire Eustachy “with cause” for running a program with an “atmosphere of fear and intimidation.”

The 90-page report, obtained last winter by the Coloradoan, said the coach had problems controlling his anger and used “profane and/or derogatory language when addressing players” that Graham found “offensive and abusive.” During that investigation, the report said, Eustachy acknowledged he had “crossed the line” and gone “way over the line at times” when asked if “the atmosphere within the basketball program is one of fear and intimidation.”

Frank declined Graham’s recommendation to fire Eustachy at the time. Instead, the coach was placed on a corrective plan that included:

• Refraining from directing “profane, derogatory, and/or demeaning language or gesture in the presence of or towards your players, staff or anyone else while acting in the scope of your employment”
• That he “not throw, punch, or kick objects in the presence of your players, staff, or anyone else” while acting in the scope his employment
• That he “not retaliate or seek retribution of any kind against any person that you believe may have participated in the investigation or monitoring” of his behavior
• That he control his anger at all times
• That he “(1) represent the university in a positive and professional manner; (2) adhere to the standards, values and policies of the university; and (3) handle conflict and adversity in a manner that maintains the respect and dignity of the individual(s) involved
• Make a public apology to his players and staff and tell them to hold the coach accountable for his behavior moving forward by reporting any further instances of similar conduct to Graham, Morris or Cottingham
• Commit to attend six anger-management classes before July 1, 2014

Frank, Parker and other school officials have repeatedly declined to say whether Eustachy complied with those requirements. Several sources close to the program, who declined to be identified for fear of retribution, have said the latest investigation is an effort to determine whether the coach has complied with those requirements.

Eustachy's contract, first signed in July 2013, had been extended three times by what Parker said was “mutual agreement” between the school and coach.

CSU is the second school to replace Eustachy for his conduct while coaching its men’s basketball team. Iowa State fired Eustachy at the end of the 2003 season after photos of him kissing female students, with a beer in hand, were made public. Two years earlier, he had guided the Cyclones to the Elite Eight of the NCAA tournament while being named the national Coach of the Year by the Associated Press.

Eustachy acknowledged he was an alcoholic, went into a rehabilitation program and took a year off from coaching before being hired in 2004 at Southern Mississippi. He spent nine years there before he was hired by CSU as a replacement for Tim Miles, who left after five seasons for the head coaching job at Nebraska.

Eustachy, who was hired in April 2012, guided the Rams to a 121-74 record in his five-plus seasons, including an NCAA tournament berth in 2012-13 and appearances in the National Invitation Tournament in 2014-15 and 2016-17. His 121 wins are tied with Stew Morrill (1992-98) for No. 2 all-time among CSU coaches, trailing only Jim Williams, whose teams won 352 in his 26 seasons (1955-80). Eustachy's .637 winning percentage is also No. 2 among the 19 head coaches in school history, trailing only the .638 of Boyd Grant (1988-91).

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His career coaching record is 523-332 in 27 seasons. The 523 wins are No. 58 on the NCAA’s all-time list.

Eustachy isn't the first prominent CSU coach to lose his job over concerns he was abusing athletes. Football coach Earle Bruce, a member of the College Football Hall of Fame, was fired in 1992 by then-CSU President Albert Yates, who found a "high level of intimidation and fear fostered by Bruce" during an investigation into his program. Bruce was found to have both physically and verbally abused players, Yates said at the time.

Follow reporter Kelly Lyell at twitter.com/KellyLyell and facebook.com/KellyLyell.news and listen to him talk CSU sports at 11:35 a.m. Thursdays on KFKA radio (AM 1310) and 10:45 a.m. Saturdays on Denver’s ESPN radio (AM 1600).

Timeline

April 12, 2012 – Larry Eustachy hired as the 19th head coach of CSU’s men’s basketball program.

July 15, 2013 – Eustachy signs five-year contract with option to extend three times for an additional year.

Nov. 24, 2013 – Eustachy and athletic director Jack Graham meet at Graham’s home to discuss the coach’s ejection for receiving two technical fouls in a Nov. 19 loss at UTEP. During the meeting, Graham said he received a voicemail message from Mountain West commissioner Craig Thompson in which Thompson said “the conference has no leash left for Larry … in fact, he may not even have a collar” in regard to his behavior on the sidelines.

Feb. 1, 2014 – CSU player Daniel Bejarano has to be forcibly restrained by assistant coach Leonard Perry during a heated verbal exchange with Eustachy during a timeout in a game at San Diego State.

Feb. 4, 2014 – Graham and Eustachy meet to discuss circumstances surrounding Eustachy’s exchange with Bejarano and the coach’s relationship with his players.

Feb. 17, 2014 – Graham, deputy AD John Morris and senior associate AD Steve Cottingham begin meeting individually with players and staff members about Eustachy’s conduct and the way he runs his program.

February 2014 – Graham compiles 90 pages of notes on his investigation into Eustachy’s behavior and concludes the coach should be fired for “just cause” for creating and maintaining an “atmosphere of fear and intimidation” in the men’s basketball program. CSU President Tony Frank rejects Graham's recommendation and instead asks that the coach be placed on a “zero tolerance” policy moving forward concerning the verbal and emotional abuse directed toward players and staff members outlined in Graham’s investigation.

March 5, 2014 – A letter, drafted by Graham with input from the university’s legal team, is sent to Eustachy and outlines the terms of the “zero tolerance” policy with notification that violating it will lead to the coach’s termination with “just cause.”

Aug. 8, 2014 – Graham is fired as CSU’s athletic director over what Frank said was a concern about his management style.

Aug. 13, 2014 – A summary of a job performance review earlier that summer, obtained by the Coloradoan through an open records request, reveal “low morale” among athletic department employees and a poor work environment. Graham released a statement later that day disputing the report’s findings.

April 6, 2015 – Perry and fellow assistant coach Ross Hodge, who both came to CSU from Southern Mississippi with Eustachy, resign to take jobs as assistant coaches at Pacific and Arkansas State, respectively.

Jan. 29-30, 2018 – CSU athletic director Joe Parker; Cottingham, now the deputy AD; and NCAA compliance director Shalini Shanker conduct individual interviews with men’s basketball players and staff members about Eustachy’s conduct and how the program is run.

Jan. 31, 2018 – Parker issues a statement acknowledging he is conducting a “climate assessment” of the men’s basketball program.

Feb. 3, 2018 – Eustachy is placed on paid administrative leave for the duration of the assessment, just hours before a home game against Nevada. A report by The Denver Post, citing anonymous sources close to the program, says that Eustachy told the team that he had been assured by Frank that his job was safe. Frank, through a school spokesman, denies making any such comments. Associate head coach Steve Barnes is named interim coach.

Feb. 8, 2018 – CSU players boycott practice over what they later said was a concern that they were not receiving any information on the investigation into the program from Parker or the athletic department.

Feb. 10, 2018 – Barnes is placed on administrative leave hours before a home game against San Jose State. Assistant coach Jase Herl is asked to coach the team that day.

Feb. 12, 2018 – Herl is named the interim coach.

Feb. 26, 2018 — Eustachy resigns.