I think it's nonsense. I've always thought it was nonsense. Jon Gruden did not sign an MOU. He did not sign a contract. He never agreed in principle to be Tennessee's next coach.
However, let's consider a few things: Gruden also didn't go out of his way to dismiss rumors that he was going to be UT's next coach. More than that, he was given multiple opportunities to shoot them down and didn't. Not once. Then there was that whole much-discussed Seattle radio spot, where he asked the hosts to not ask any questions about Tennessee and then brought up Knoxville and Rocky Top — "great song" — unprovoked. Is it possible, just barely, that Gruden was interested in talking to Tennessee about the job?
Clearly he was. That doesn't mean he was going to take it; I still think that was a long-shot. At the end of the day, common sense has to prevail. But let's not forget that he was reaching out to some former UT players about joining his hypothetical coaching staff at Tennessee. Those aren't the actions of someone who has no interest in the job.
Based on what has been said and what I've been told, this is what I believe: a faction of boosters very much wanted Gruden to be the coach and assured him that they could meet his demands. Currie didn't say yes but didn't say no, but also made no attempt to make contact with Gruden — which is why Gruden began telling some people he was not going to coach at UT. Boosters were still holding out hope that Currie would engage with Gruden once the regular season ended. And then Currie blindsided them by going after Schiano.
Now let's back up to 2012. Circumstances were largely the same. Some boosters wanted Gruden. There was some mutual interest. Most people scoffed at the notion that Gruden would ever coach at Tennessee, only to have Gruden himself later indicate that there had been interest on his part. He went so far as to reach out to some folks with Tennessee ties about joining his staff. And then it fell apart.
In 2012, as in 2017, it was alleged that the athletics director didn't want Gruden and stood in the way of a potential hire. Now, like I said, I think it was unlikely Gruden would have agreed to coach either time. But a lack of buy-in from the AD prevented talks from even getting serious.
So what's the one constant between 2012 and 2017? Different ADs, obviously. But one very influential booster who, for whatever reason, doesn't want Gruden.
I go back to what midtnvol posted a couple weeks ago by a longtime NFL employee who had worked with Gruden before and knows him as a collegue (all verified). He didn't speak directly to Gruden, but spoke to some that are "close to him" (no names). What he said was very credible. Gruden doesn't shoot down the rumors because in the Entertainment business generally and certainly in Sports, it's beneficial to your personal brand to be seen as being desired.
It further stated that Gruden does have an interest, though not a huge one, in one day maybe returning to the NFL though not college. It further stated not to assume that interest in Gruden by the NFL was automatic and that to maintain his professional viability Gruden doesn't mind being linked to coaching openings.
The above makes a whole lot of sense to me, and comes from a credible source.