Loomis, also the general manager of the New Orleans Saints, was placed in his oversight position with the Hornets after Saints owner Tom Benson bought the basketball team from the NBA, ending a period of ownership uncertainty that had made it difficult for Hornets general manager Dell Demps to acquire or keep established players in free agency. Forward David West cited the lack of a long-term owner as a factor in his decision to leave New Orleans for Indiana in free agency last year.
Williams said Loomis initiated the extension talks.
"When he did that I kind of felt like when the older guys used to pick me to play on their team," Williams said. "It just made me feel like they're putting a lot of trust in me. Mr. Benson has told everybody that he's confident in our ability as a coaching staff. I just felt really good about that."
Williams came to the Hornets after five seasons as the assistant coach in Portland under then-head coach Nate McMillan.
Williams played in the NBA for 10 years after the New York Knicks made the former Notre Dame standout a first-round pick in 1994. His playing career also included stints with the San Antonio Spurs, Denver Nuggets, Orlando Magic and Philadelphia 76ers.
The Hornets hired Williams when the club was up for sale by founder George Shinn. During his first season, the NBA stepped in to buy the club in hopes of stabilizing club finances and orchestrating a deal with a new, permanent owner committed to keeping the team in Louisiana long-term.
At the time, Williams' peers would often say they felt sorry for him having to start his head coaching career amid such instability, but Williams never complained, saying he felt lucky to be getting paid well to do something he loved. His players routinely professed their admiration for Williams' approach and always seemed to play hard for him.
Even as the end of last season approached, with the Hornets well out of the playoff hunt, they finished with eight victories in their final 13 games.