From all accounts since I've been listening to it all afternoon, it's a mutual parting ways with no hard feelings on either end. There is a lot to it....
Trotz had a clause in his contract that said if he wins the cup he automatically gets $300k upgrade to his base pay and a 2 year extension. The problem is his current base salary is $1.5 million so that is a very weak upgrade. And on top of that he wants security and is looking for a 4-5 year contract.
The Caps don't want to put him into a 5 year contract because they have Reirdan basically waiting to take over the reigns and if they waited 5 more years to put him as the HC, he would probably be gone to another team by that point. And Trotz was looking for 5 years @ $5 million per year and apparently wasn't budging.
So it was just a mutual parting with no hard feelings. Also, Trotz was about to be fired in December but the Caps turned it around. He's been on the hotseat for quite some time, and people still think even though he won a Cup this year, the previous 3 years were a failure not being able to get beyond the 2nd round. Whether you agree with that or not is up for debate, but that's the picture. It's just the fact that he won the cup and is now parting that is such a big deal. I wish him the best of luck and thanks for bringing DC a championship!