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If Arky takes him, then good for them and good for UT. The media spotlight-such as it is will not be on UT and Hart and company can work on getting the RIGHT guy. (Which may not be the flashiest, splashiest $60M guy.)
I have a feeling that hiring Gruden would be just one more "sugar rush" of magic dust that would cost more than Tennessee could pay, provide us only a temporary high-and escape from our problems, and a nice soft descent back to where we are now (or worse).
Find the right guy and strike a deal with him. Backload the contract with performance incentives. You defeat archrivals? Bonus. You finish in the top ten? Bonus. You get to SEC Championship? Bonus. You fill up Neyland Stadium with Big Orange (not an archrival's color)? Bonus. By contrast, it seems that the single biggest financial incentive in Dooley's contract was the buyout that awaited him if he failed to do what he was hired to do. Seems to me he'll make more money not coaching than he did while he was coaching.
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