UTVolinExile liked this, it was kind of late in the previous thread this morning, so I thought I would post it again for those who didn't see it.
My guess (condensed version), based on info here, at what happened:
A group of boosters wanted Jon Gruden as coach. The Haslems, Currie and Davenport feigned support of the initiative. The booster group proceed to gauge Gruden's interest and what it would take to get him to UT. They came to general agreement over three weeks ago and even celebrated the agreement on Thursday in Dunwoody, GA two weeks ago. While legal matters were being worked out, the Haslems, Currie and Davenport were pursuing their own agenda to maintain complete control of UT athletics. The Haslems, thinking they alone know what is best for UT, were enamored with Schiano when he previously interviewed for the Browns coaching job(this was before the release of the previously sealed testimony of the Sandusky case implicating Schiano, thus the lack of due diligence on Schiano, because they had already vetted him). They thought he was a better fit for UT than Gruden. They knew they couldn't sell Schiano to the other boosters, so they kept Currie and Davenport on a short leash and thought they could have the deal done before the other boosters could do anything about it. Once announced, the other boosters would be obliged to support their new coach. It would have worked except a member of the AD staff leaked the deal to other boosters and they mobilized the support of the UT BOT and legislators and Currie was forced to back down--for the time being.