The deal offsets whatever money LA owes him is what I am reading everywhere. It's like when players get amnestied. I'm honestly surprised he didn't sign for like $500k if that is the case though, just to save his new bosses some money.
THats not typically how coaching contracts work in the NBA.
They're much more like every day real contracts. If someone signs you for 5 years, and fire you after 2, they still have to pay out the remaining 3.