This was expected.
It was pretty obvious Mike Budenholzer didn’t want to stick around and lose a lot of games with the Atlanta Hawks as they rebuild the next few years, especially after he had been stripped of his GM powers. Budenholzer went well down the road with the Phoenix Suns about their open coaching position before thinking better of it. Since then he has set up a meeting with the Knicks about their coaching vacancy, a job he reportedly wants badly.
At this point there was no need for the Hawks and Budenholzer to continue their sham marriage, so they have agreed to amicably separate, a story broken by Adrian Wojnarowski of ESPN and since confirmed by the Hawks.
The Atlanta Hawks and coach Mike Budenholzer have mutually agreed to part ways, league sources told ESPN. Story soon on ESPN.
— Adrian Wojnarowski (@wojespn) April 26, 2018
UPDATE: Our Club & Coach Mike Budenholzer have mutually agreed to part ways.
— Atlanta Hawks (@ATLHawks) April 26, 2018
Hawks GM Travis Schlenk confirms team and coach Mike Budenholzer have parted ways. "Feel like it’s in the best interest of both parties."
— Michael Cunningham (@MCunninghamAJC) April 26, 2018
Budenholzer said this to Wojnarowski of ESPN:
For Budenholzer, the long-time Spurs assistant and a strong Xs and Os coach, look for him to both push for the Knicks job and be in the running if/when the Milwaukee Bucks job opens up whenever their season ends. In both cases he’s a fit — those are teams that need a culture and system reset, and Budenholzer proved he can bring that to Atlanta (that was a good team before they let Al Horford and Paul Millsap walk for nothing).
With Atlanta, they likely will turn to a top assistant coach who will get a chance to develop young players on that team (and not cost Atlanta as much as an established coach). Stephen Silas of the Hornets is a rumored name, but there are others.
Sources: Among current assistant coaches expected to be a part of the Hawks search to replace Budenholzer: Charlotte's Stephen Silas, Portland's Nate Tibbetts and David Vanterpool, San Antonio's Ime Udoka and James Borrego.
— Adrian Wojnarowski (@wojespn) April 26, 2018