Interesting circumstances. If the U negotiates a settlement with J, the cost is born fully by the athletic department. The U extended J's contractrt through April 2019. He's looking at a minimum of 2.5 years of value.
The allegations would no doubt include Wrongful Termination, defamation, libel and slander, plus punitive damages. No if he files a suit, there is insurance in place that will respond to the cost of defense and pay any damages subject to the deductible chosen by the University. The big issue, it covers the cost of defending the Right out of the box, there is insurance place to cover a portion of the loss that otherwise would have been absorbed internally.
Universities are notorious for staunchly defend such liability allegations. They wont hesitate to run up a $500K or $1M legal bill. Expect this one to drag along for years.