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Of course, especially to be gym owner : business owner might be even just an investor. Without any skills, for this he is able to hire coaches.
Regards to another part, too yes and sometimes one just didn't had opportunity to get suitable pro bouts to climb up.
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One from world level weightlifting coaches in his sport career was just champ in small country.
Get injured.
He is true A+++ level coach, if I correctly remember 26 years was National Olympic team's head coach. Why he is more than just coach? He is excellent tutor and now most likely his student reached level to serve next games as National team's head coach.
Yes, not notable former athlete was able not only help to get medals, appeared that was able to teach a guy to be his level coach.
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Another example: highest sport achievments ; once junior champ and once student's champ in large country.
Mainly because he was a student in Uni not just formally.
Best his students achievment level was Olympic gold medal level.
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BTW, what accomplishments had these guys:
https://en.wikipedia.org/wiki/Viktor_Kuznetsov_(wrestling_coach)
https://en.wikipedia.org/wiki/Cus_D'Amato
Cus had a brief career as an amateur boxer, boxing as a featherweight and lightweight, but was unable to get a professional license because of an eye injury
Yeah but there's a difference between "accomplishments" vs "knowledge, skill, and being good as a teacher/coach"
Let's face it we have no idea how good this purple belt is, who he is, if he's a good teacher, etc. But most likely he's not going to have great knowledge if he's a purple belt, but maybe he has enough to teach new students very well for a 1-3 years+ at his current level.
D'Amato maybe didn't accomplish a ton but neither did Bill Belichick nor did John Danaher. D'Amato might have had top tier knowledge and love for the sport, and studied it 7 days a week and could tell you more about angles and footwork and punching, boxing as a whole, than 99% of others. John Danaher is a perfect example of that applied to BJJ, he didn't compete or anything but he's extremely knowledgeable, created his own systems, and is one of the best BJJ minds / coaches out there.
Ultimately, it's highly unlikely a random purple belt (who is allegedly not good) is even remotely close to those standards.
Unless he's very weak physically and/or crippled in some way...I would guarantee he doesn't have the knowledge. Even if OP failed to mention himself being a 225lb "muscular" former college wrestler and football player at brown belt originally, and even if he was...the purple belt should have put up a "fight" and been competitive most likely unless severely weaker/crippled/injured.
It's probably fine to open a gym in a rural area with no schools around, it's beneficial. But at the same time we just don't have the information to know if this guy is a "fake" Purple belt in who was ranked up due to longevity/attendance to some extent, or what.