Magic allow Donovan out of contract

"As our signing of Billy Donovan showed, we are committed to winning a championship," the statement said. "We have the legal right to hold Billy to the contract he signed, but with him having a change of heart about leaving college basketball, we want him at the University of Florida. We have granted him permission to break his commitment and return to the Gators."

Donovan signed a lucrative five-year deal to coach the Magic on Friday, but almost immediately regretted the decision and spent the next several days trying to get out of his contract.

According to reports, the Magic wanted to ensure that Donovan would not coach another NBA team for the next five years before breaking the contract.

In Gainesville, Donovan compiled a 261-103 mark over 11 seasons, leading the Gators to the national championship the last two years and a championship game appearance in 2000.

Earlier this offseason, he turned down an offer to become the head coach at the University of Kentucky.

In 13 years of collegiate coaching, which included two years at Marshall before joining the Gators, Donovan compiled a 296-123 record.

In Orlando, he would have replaced Brian Hill, who was fired on May 23 after two consecutive losing seasons and a sweep at the hands of the Detroit Pistons in the first round of the playoffs this season.

The Magic have now reportedly turned to Stan Van Gundy in an effort for find a new coach.

But, the Miami Heat are threatening to hold up the hiring of Van Gundy, who has one year left on his contract as a consultant with the club, by asking for compensation.