Billy Donovan is out in Orlando, and his cold feet could cost both him and the Magic. The Magic finally let Donovan out of a $5.5 million annual deal late Wednesday night after news broke days ago he was having second thoughts. Donovan may have stained a good reputation built on two straight championships at Florida.

"I realized in less than 24 hours after signing a contract with the Magic that I had made a mistake that had nothing to do with the Magic," Donovan said in a statement Wednesday night. "Instead, I realized that, in my heart, I belonged in college basketball. As soon as I realized that, I contacted the Magic immediately to let them know."

Orlando is still coachless, and could miss out on second choice Stan Van Gundy if the Sacramento Kings hire him quickly.

Donovan walked out of his first NBA job after just six days to return to Gainesville, where he won the last two national titles.

"Although this has been a difficult time for everyone, for which I am profoundly sorry, in my heart I know that this is the right thing for the Magic and for me," Donovan said. "It's my admiration for the whole Magic organization that led me to this course of action. I believe that the Magic has a great future ahead of them, and I wish them all the best."

Van Gundy, a former Heat coach and current adviser to Pat Riley, has said publicly he'd love the Orlando job, but the Magic's indecision with Donovan may have cost them a shot at Van Gundy.

The Kings confirmed Wednesday that Van Gundy was in Sacramento for further discussions about becoming their head coach. Further, Van Gundy is under contract for another year in Miami, and the Heat reportedly want compensation if the division rival Magic hire him. Sacramento might not have to pay such a penalty.

The Magic could offer one or more of its three second-round draft picks, Nos. 39, 44 and 54. Orlando has no first-round pick in the upcoming draft, and the Heat have only one pick, No. 20 overall.

The Magic-Donovan romance was a carousel act that stunned fans twice ¡ª with his Thursday hiring, then an out-of-nowhere weekend reversal.

The Magic wouldn't discuss terms of the deal, but said in a written statement Wednesday Donovan's hiring proved "we are committed to winning a championship."

"We have the legal right to hold Billy to the contract he signed, but with him having a change of heart about leaving college basketball, we want him at the University of Florida," the Magic said. "We have granted him permission to break his commitment and return to the Gators."

Florida athletic director Jeremy Foley, reached late Wednesday by The Associated Press, said: "It's great news for the Gators."

Foley withheld further comment until a Thursday morning news conference.

Magic fans met Donovan with rousing applause at a nationally televised news conference Friday as he replaced Brian Hill, who was fired after two losing seasons in his second stint with the team.

Donovan said he agonized over the jump to the NBA, but wanted a new challenge. He promised to bring passion to the pros and saw in the Magic a young team with enough talent and salary cap room to succeed where most college coaches failed.

Donovan always wanted to try the NBA, and the Magic job was perfect: five years, $27.5 million, and his family could even stay in Gainesville while he worked 115 miles away. Coming off the first consecutive national championships in 15 years, his stock would never be higher.

The 42-year-old took the jump. But in the end, the builder of a college power couldn't leave Gators glory behind.

"I have enormous respect for the Magic ¡ª including (owner Rich DeVos' family), the management, the team and the fans," Donovan said. "In these circumstances, it would have been entirely unfair to the Magic and their fans to have continued on."

Donovan is the most successful coach in Florida history, getting to three national championship games in just 11 years. He first left Florida after the school lost its top six scorers, four of them juniors who opted to enter the upcoming NBA draft after the Gators' second title.

Donovan was set to sign a seven-year contract worth approximately $3.5 million annually with Florida, a deal that was nearly finished when he agreed to coach the Magic.

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