He's both. Folks, his presser was textbook propaganda. The primary purpose of propaganda is to deflect by simply repeating something over-and-over whether it's true or not. Do you believe that North Korea's ruling party really believes what they tell their citizens? It's one big lie dressed up as something else.
I noticed MB mentioned that this is the plan he presented to Daniels and the BOT. Does anyone believe that this isn't Daniels "plan", or at least what Daniels demands to hear? Mitch Daniels has gone out of his way to brand himself as the college president who will not participate in the "arms race". His ego and self-image seems to be 100% wrapped up in this concept.....to the point where it's bad business. Image that, a "leader" so committed to being right (smarter than everybody else) about an outcome, that they won't let facts get in their way of their opinion?
Taking a risk and eating DH's contract violates Daniels PRE-DETERMINED notion of how things are supposed to be......not how they are. To get a little political, it's like the argument that the Iraq invasion was going to pay for itself with oil revenues. Or that the invasion was a "success". Hell, we still have people claiming that BS. In spite of how painful it is, I think it's fairly clear that eating the buy-out is more likely going to minimize the losses over the long-term simply on attendance revenue alone..... But noooooo, that's not how the it is suppose to work in the "world according to the brilliant Mitch Daniels".
Perhaps MB also believes this bull-crap too......but let's say he doesn't. I've become convinced that Daniels wouldn't let MB fire DH even he wanted to because then not only does MB have to admit he made a bad hire....but Daniels would have to admit that his world view on sports doesn't jive with current reality. This move allows Daniels to still be self-righteous on one of his signature "beliefs" even though it's probably losing money for the University. But since we'll never know for certain, he can maintain the farce.