Word comming out of LA is that it's strictly a money/ego issue. The Lakers offered PJ the same deal he currently has, which is unheard of for the Lakers coach. PJ wasnts more money than Larry Brown and George Karl.
I say give it to him. There is currently no coach with as much succes, let alone more, the PJ. Heck there is no coach in NBA history with more succes tha PJ. Give it to PJ before the whole team falls apart. Kobe, GP, Fisher and Malone are all FA's this summer, PJ COULD be the first thread that unravels the whole thing.
I will tell you all this: if Phil goes, Kobe is also gone. It might be why he said he does not care if Phil stays or goes, being that he plans to leave this summer regardless. But no Phil in LaLa land means no chance for Kobe being there either.
If Kobe really plans to leave, and Phil knows it, I wonder if just Shaq alone would even entice Jackson to stay and work out an extention. He apparently thought that extention was in the works, but if they are trying to jerk him around, he may not be the happiest camper afterwards.
If they aren't willing to pay him what he feels he's worth, the team is doing exactly what would make Phil exit without it looking like it's the team's fault. Clever.