First off, sorry for the lack of links and stuff... I'm writing this on my iPhone while eating lunch. But for the record, I first read this story on Greg Auman's blog.
The gist of today's events is that Jim Leavitt's attorneys, led by Wil Florin, alleged that athletic director Doug Woolard told Leavitt about the need to find a job for Terrelle Woody as part of some kind of package deal to get Gus Gilchrist to sign with USF basketball. (Woody has since left the program if I recall correctly.)
To me this is a play by Florin to get a settlement done for Leavitt, and maybe at an increased price tag. While the Woody maneuver is shady, it does happen in various places from time to time. And it's not like this is an earth-shattering piece of news for anyone who follows the team closely.
But we've seen Woolard fold in situations like this. Take the Myrtice Landers thing a few weeks ago. Landers also happened to hire the same attorney as Leavitt, so it's not a stretch to think that once Florin saw what Woolard did with Landers, he set to work figuring out how to do the same for Leavitt.
This could end up being way off later on, but for now it seems like the most plausible explanation.