Seems like a game of chicken. Maybe the Blazers gambled that Olshey would just quietly resign when he was told the investigation was coming. Failing that, go for firing with cause of an abusive culture. (That sure sounds a lot better than firing him for being incompetent for a fucking decade. I mean, if you fire him for that you have to admit you've allowed him to be incompetent for a decade.)
Olshey didn't quit, though, maybe because he realizes there aren't going to be a lot of teams lining up for his services given how shitty he's been at building around Dame, especially after the disastrous 2016 contracts. And he sounds like an asshole, so maybe there might not be a lot of business opportunities through his network. So getting legit bought out is his only real source of big money in the future. Unless he can get another soap opera gig.
Olshey preferred to get his name dragged through the mud and still get paid. I guess I don't blame him, since his reputation was worthless anyway.
And I don't blame the Blazers for trying. Olshey wasted so much of the Blazers' money, they figured why not recoup a little. They could've then told themselves the Blazers have done just dandy for the past 10 years, but it's just a shame Olshey was such a jerk. Maybe they'd also get some good PR by making a social statement about workplace misbehavior. Maybe it would help wash the stink off from the Billups rape allegation.
Regardless, the point of chicken is that somebody has to swerve. If nobody does, it ends badly for everyone. I can't see how this ends with Olshey still employed, or the Blazers not paying him.