Dan Majerle seeks severance, sues GCU for breach of contract

Dan Majerle has been something of a household name in Arizona since being drafted by the Phoenix Suns in 1988 under the ownership and management of Jerry Colangelo. Majerle’s career seemed to come full circle when Colangelo recommended him to be the head coach at Grand Canyon University (GCU). He and GCU celebrated several successful seasons without issue, but it all came to an abrupt end on March 12, 2020, when a losing season seemingly resulted in his abrupt termination. Notably, the media was surprised, and the firing made headlines in the state, even amidst the news of the spread of COVID-19 and the cancellation of the professional and college sports seasons. Two months later, headlines erupted again when the coach’s counsel shared copies of his breach of contract complaint with the media before serving GCU.

Basis for litigation?

Not surprisingly, Majerle’s complaint asserts his performance was nothing less than stellar throughout his tenure. The complaint also alleges GCU terminated his employment “without any advance notice,” claiming it “was moving in another direction.”

According to the complaint, Majerle is entitled to severance including his full salary (and pay increases), bonuses, and group healthcare coverage from the date of his discharge until May 31, 2023.

Entitled to severance?

Arizona is an at-will employment state, however, meaning one can be fired at any time for any reason so long as it isn’t an illegal reason. So, why would Majerle be entitled to three years of severance benefits?