I guess he is the only one who speculates on this site!
For that speculation to be true, that means in order to take this job, Pitino, a HOF coach, had to agree to have his hands tied in that he could not select/keep/recruit players he might have wanted, not because of grades, conduct or ability but for the school to win a lawsuit (which they are going to wind up settling anyway which was the end game to begin with). Now we know he said he didn't want to leave NY but he did have other schools interested which could have led to a change of mind/heart.
So ask yourself, why would he agree to such a stipulation? Does that sound like something Pitino would agree to? Did he want the job the job so bad to relinquish that control when he could have stayed at Iona for another year with a very good team or kick the tires on other opportunities?