Sanderson resigned from Alabama on May 18, 1992, days after Nancy Watts, his longtime secretary, filed a sexual discrimination lawsuit against him and the university with the US Equal Opportunity Commission. Both Sanderson and Watts admitted they had had an affair from about 1970 to 1985, but both offered conflicting stories about what happened on March 17, 1992.[3] Watts said that on that day, two days before Alabama was to play Stanford in the NCAA tournament, Sanderson punched her in the face during an argument, giving her a black eye. Sanderson said Watts had become hysterical and that, in an effort to defend himself, he extended his hand and she collided with it, resulting in the injury. More than a year later, Watts' lawsuit against Sanderson, the university and then-athletic director Hootie Ingram, was settled out of court, days before it was scheduled to go to trial.

Alabama and Sanderson's homeowner's insurance policy paid Watts $275,000. Sanderson's employment with the university ended after 32 years.[

If you believe Sanderson's version then I have some land in Florida I want to sell you.