From what has been reported so far, his side of the story sounds like a load of crap...but I guess it will play out.
Bottom line is that it is all about $$. GW has the right to terminate him, question is do they have to pay out the 5 years he has remaining on his contract or did he do something to violate the terms of his contract that would relieve GW of the obligation to pay him.
The timing has to be absolutely terrible for GW, it really puts a pall over the upcoming season. I know someone suggested that they may have timed the announcement so as not to lose Cavanaugh, but I would think that the timing is more of a long-term negative for the program than any gain they might make by keeping Cavanaugh on the hook for this upcoming season. The timing makes hiring someone outside of Lonergan's current staff difficult because they are only a couple of weeks away from the beginning of practice and it is also right in the thick of the recruiting period for next year's class. I assume Lonergan's recruits are probably all crossing GW off of their lists as we speak.