Dunleavy was hired to coach the Clippers while Elgin Baylor was still the G.M. When Baylor was let go Dunleavy took on the G.M role without any further compensation. In other words the G.M.position was being performed for free.
When Dunleavy stopped coaching, he resigned and moved upstairs to be the full-time G.M., a position he was doing for no additional compensation. Since he "resigned" from the position of coach for which he was hired, he is not entitled to any additional compensation. Pretty clever.
You have to have a mind like DTS to be able to come up with this shit. I guess the arbitrator will decide if it makes any sense. Really makes you want to work for the organization.