The situation is that Hoiberg signed a new long-term contract last year giving him a big raise. It should be obvious that the raise was given to keep Hoiberg in his contract for at least a few more years, and bring security and stability to the program. It seems apparent now that Hoiberg had no intention of honoring even a small part of the contract's time frame. IMO, signing a contract when you have no intention to abide by it is dishonest. Furthermore, I think good arguments can and have been made that his pursuit of an NBA coaching job has hurt the program from a recruiting standpoint, which puts him in further violation of his contract. And with the way this thing is dragging out, it gives ISU less and less of an opportunity to conduct a proper coaching search. Although I suspect (and hope) and than informal coaching search has already been underway for some time.
If Hoiberg had no intentions of sticking around, and intended to make the jump as soon as this year, last year he should have refused the raise, resigned, got himself an NBA front office job, and launched his NBA coaching career from there. I think his NBA coaching dreams are admirable, but undermining the ISU program while pursuing those dreams is complete bush league. If you want to dream, then be prepared to take the risks that go along with it.