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KTSM News – NMSU, former basketball coach Greg Heiar reach settlement over wrongful termination lawsuit

Posted on August 15, 2025

EL PASO, Texas (KTSM) — New Mexico State University has reached a settlement with former men’s basketball head coach Greg Heiar, bringing an end to a wrongful termination lawsuit stemming from one of the most tumultuous seasons in program history.

ESPN was first to report the news of the settlement between the two sides.

New Mexico State University and its former men’s basketball head coach Greg Heiar have reached a settlement over a wrongful termination lawsuit.

First reported by @MedcalfByESPN.#NMSU pic.twitter.com/qTIf5bhCKU

— Sam Guzman (@SamGuzmanTV) August 15, 2025

According to Geoff Grammer of the Albuquerque Journal, Heiar received a $600,000 settlement from NMSU. Both sides agree to drop further action.

Former NMSU basketball coach Greg Heiar has received a $600,000 settlement from NMSU related to his wrongful termination case. Both sides agree to drop further action.

Attached: screen shot of state risk management agreement and statement from Heiar’s attorneys… pic.twitter.com/DmTBPCVb6x

— Geoff Grammer (@GeoffGrammer) August 15, 2025

Here is a screen shot of the state risk management agreement:

Heiar served as the Aggies’ head coach during the 2022-2023 season — a season defined by crisis and controversy. His tenure was marred by a fatal shooting involving former NMSU player Mike Peake and a hazing investigation that ultimately led to the cancellation of the remainder of the season.

Peake was involved in a deadly incident on the University of New Mexico campus in November 2022. Authorities later determined he acted in self-defense and was not charged.

In early 2023, a hazing investigation revealed allegations of sexual assault and harassment involving players on the team. The fallout led to Heiar’s firing and an $8 million settlement paid to two former players — Shakiru Odunewu and William “Deuce” Benjamin.

Following his dismissal, Heiar filed a wrongful termination lawsuit, alleging that NMSU made him a “sacrificial lamb”.

In a statement provided to KTSM by the Danoff Law Firm, Heiar’s legal team confirmed the matter has been resolved:

“Coach Heiar is pleased that this matter is now fully and finally resolved to our satisfaction, and excited to continue his coaching career. Coach Heiar wishes NMSU, the men’s basketball program, and the Aggie fans all the best going forward.”

KTSM reached out to New Mexico State University for comment. A university spokesperson declined to provide a statement on the settlement.

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