I don't think Bounds leaving can be a good thing for the athletic department. In the short term it will at least give Hoiberg reason to reconsider, though it doesn't mean he will change his mind.
It's hard for me to imagine a president more supportive of and active in athletics, so in the longer term it'sprobably bad, though it could be neutral.
Given the makeup of the Regents with their history of supporting athletics and the fact that most of them are responsible for hiring Bounds, this change is unlikely to be coming from them. So it's either truly Bounds choice or it's coming from the governor or there is a scandal coming.
The timing is extremely unfortunate if itss Bounds' choice. Why announce your resignation when you're about to hire your 2nd most well known and highly compensated employee?