One of the ugliest weeks in the history of the Iowa State men’s basketball program is over.

Larry Eustachy resigned as head coach Monday after day-long negotiations ended with Eustachy and the University reaching an agreement that will pay him a total of $960,000.

ISU President Gregory Geoffroy and Steve Zumbach, a Des Moines attorney acting as legal counsel for the University, addressed the issue at a 6 p.m. press conference.

“We believe accepting his resignation will bring resolution to a very difficult issue,” Geoffroy said as he read from a statement. “This decision is in the best interests of the university, Mr. Eustachy and the Iowa State family.

“This decision enables our basketball program to move forward, and it supports Mr. Eustachy and his family in his struggle with alcohol.”

Eustachy will be paid the balance of his base salary totaling $110,000 through July 1, 2003. A one-time severance payment of $850,000 is also part of the package and will be paid on Jan. 1, 2004. All of the money Eustachy receives in the settlement will be from university funds, Zumbach said. The base salary also provides health insurance that covers treatment for alcoholism, which Eustachy admitted to Wednesday.

The deal brings to a close a tumultuous week in the ISU athletic department that began when pictures and accounts of Eustachy’s actions following a loss at Missouri last January were published in the Des Moines Register on April 28. Other allegations from a postgame fraternity party on the Kansas State campus in 2002 were also reported.

Athletic Director Bruce Van De Velde announced his recommendation that Eustachy be terminated as head coach on Wednesday. On Friday, the NCAA ruled that Eustachy committed secondary violations when he made improper cash payments to players totaling $30 on two occasions last season for making free throws.

The issue has divided fans and boosters in the ISU family. Zumbach said it was apparent that a deal needed to be reached soon.

“This matter needed to be brought to a close,” Zumbach said. “If allowed to continue, that damage would have been irreparable.”

Eustachy said he hopes the settlement brings what has become a national frenzy to an end. He had until 5 p.m. Monday to appeal Van De Velde’s recommendation. Had a settlement not been reached, Zumbach said Eustachy would have appealed.

“It’s time to move on, folks,” Eustachy said from his home Monday. “I came to that conclusion over the weekend. We’ve played tug-of-war and divided this group of people enough.”

Starting point guard Tim Barnes said Tuesday that he and forward Jackson Vroman would leave the program if Eustachy was not the head coach next season. Others, including Jared Homan, said they would consider transferring. Some recruits have also expressed reservations about playing for an ISU squad not coached by Eustachy, but the 47-year-old coach urged them all to uphold their commitments.

“Our players need to come together and not have any divisions. They need to stay here and represent this university like they have from the start,” Eustachy said. “The signees need to come here and fulfill their commitments, because it’s the best place for them.”

Geoffroy said the search for new basketball coach begins now.

“I have asked Bruce to proceed immediately with the task of identifying the very best candidates possible for the position of men’s basketball coach at Iowa State University,” Geoffroy said.

Eustachy said Wednesday that Iowa State would be the last place he ever coached. He changed his mind last week.

“I’m not done coaching. I will coach again,” Eustachy said. “I can’t end it losing to the Hawks, can I?”

Eustachy won two Big 12 Championships in 2000 and 2001 and compiled 101-59 record in five years with the Cyclones.