Collins was set to make $4.5 million next season, which would have been the last year on a four-year deal. Wojnarowski reports that Collins could still possibly return to the franchise in a front office role.
After making the playoffs last and advancing to the second round last season, the Sixers have struggled to a 33-47 record this year. The Andrew Bynum saga has loomed over the team, as he has not played a single game due to knee troubles.
There were signs throughout the year that the job was wearing on Collins, and he reached a breaking point after a loss to the Magic back in February. In an emotional press conference, Collins ranted about how poorly the season was going and blamed his players for a lack of effort.
Philadelphia was Collins' fourth NBA coaching gig after stops in Chicago, Detroit and Washington.