Hey Hate,
This is a master stroke of genius by the IU administration. If they fire Sampson and promote from within, they're guaranteed to play in the NCAA championship game next year. And if they retain Sampson, they're a lock to win the whole thing!
In a black and white world, here's how the IU administration might proceed:
1) Really know and understand the values of your school.
2) If Sampson exhibits those traits, keep him. If he doesn't, part ways.
3) If he is let go, recruit and hire the best coach you can that lives your values.
4) Communicate your position as fiduciaries/caretakers of the school to players, students and all interested parties.
5) Since the circumstances under which the players committed to IU have changed due to no fault of their own, allow them out of their schollies without penalty. Or take the Bob Knight approach and tell the quitters to go eff themselves. "Nobody points a motherf***ing gun at my head."