After reviewing the facts/rumors presented over the past few months I can 100% say harts original plan was to talk to Gruden and work out ballpark figures/terms and proceed with the hiring process as if he doesn't exist. This is for 2 reasons. A) this gives him leverage on Gruden, knowing if BOTH sides don't meet in the middle there IS a guy lined up ready to sign the contract. Tennessee is the top job in the NCAA, in the top conference but in a division that is generally very fluid compared to the west. Also a school he has emotional attachment to.
B) if Gruden changes his mind at any point in the (approximately) 3 months they've been talking, UT has a viable backup option that will still be seen as a success. The problem is, when legit Gruden leaks occurred, the fans and boosters would no longer support plan B. Hart knew this gave leverage to Gruden in negotiations as well as put his job in severe jeopardy should talks fall through, thus misinformation on the part of the AD. Grudens agent followed suit because he stood (at that time) to make an additional $1.5M for MNF, but rumors of visits/talks with hart would seriously jeopardize that as well. Dooley made this problem worse by how bad the team performed late in the season. Had he beaten vanderbilt, he would have been coach for the Kentucky game, and likely fired after. The extra week started the media frenzy too early because no respectable coach would be caught interviewing before the end if the season, so hart needed to misdirect until candidates could be interviewed. BOOM!