Coaches who get fired with years remaining on guaranteed contracts have two options: Don’t work and get paid 100 cents on the dollar by the former employer or take a job and see the amount owed from the former employer reduced by the money earned at a new job.
Basically, the coach who takes another job usually will end up working for free, unless he somehow makes more money in his new job.
If the coach takes a new job, there’s a temptation by the coach and the new employer to pay the coach peanuts, in order to maximize the financial obligation of the former employer.