This could have as much to do with Bill Haslam as anything.
Dude is toast if the Haslam family screws up yet another hire of this magnitude. They would be known as the family that killed Tennessee football. Everything good they did for the academic side--tarnished.
And Bill is the one with the political career. He would be persona non-grata in the state, guilty by association. Vastly overpaying Mike Gundy is nothing if it means saving face for the family.
Very good points.