In 1989 allegations of misconduct and NCAA rules violations were made by members of the national media, a state appointed commission, the Poole Commission, would issue a report that concluded "Coach Valvano and his coaching staff circumvented rules in order to keep players eligible." This resulted in Valvano being forced to resign his positions as Head Basketball Coach and Athletic Director.

A 1990 NCAA investigation would completely clear Valvano and NC State of any eligibility violations. This investigation did find that NC State players had improperly sold tickets and sneakers in violation of NCAA policy, but that this was done without the knowledge of Valvano or any member of the coaching staff.

Valvano elected to retire from coaching, declining numerous offers, and moved to a career as a highly respected basketball commentator and analyst for college basketball broadcasts.

In 1992 after being diagnosed with incurable bone cancer he, and his wife, formed the Jimmy V Foundation dedicated to help to find a cure for cancer.

On April 28, 1993 at the age of 47 he would lose his battle with cancer.

1. Cancer can take away all of my physical abilities. It cannot touch my mind, it cannot touch my heart, and it cannot touch my soul.
2. Be a dreamer. If you don't know how to dream, you're dead.
3. Don't give up, don't ever give up.
4. My father gave me the greatest gift anyone could give another person, he believed in me.