O'Brien, who was fired by NC State after posted a 7-5 record in his sixth season at the school, finished his tenure with the Wolfpack with a 40-35 overall mark, including a 22-26 record in the ACC.
The Wolfpack had agreed to pay O'Brien's buyout, $1.2 million spread over four years, but the deal had a non-compete clause, preventing him from coaching at another ACC school. However, NC State AD Debbie Yow stated today that the two sides have worked out an agreement where O'Brien can now pursue any coaching opportunity.
"We agreed to two decisions with Coach O'Brien," said Yow in a statement. "First, NC State waived his non-compete clause so that he could fully pursue other coaching opportunities. Second, NC State agreed to pay a lump sum of $200,000 as complete satisfaction of the university's obligation to pay liquidated damages under the remaining years in the contract.
"We wish Coach O'Brien well in the future and appreciate his contributions to NC State Athletics."
O'Brien is believed to be a serious candidate for the associate head coaching position at Virginia, and he could also coach a position with the school, potentially tight ends.