http://www.nfl.com/videos/nfl-network-around-the-league/09000d5d822d5501/Sparano-sinking
Not my first choice, and I do have concerns, which I have mentioned before. But it wouldn't be the worst choice in the world and this report does seem to make some sense. Ross reportedly offered Gruden a deal that would have paid him $7 million a year that he turned down in January. Whether it was a formal offer or just a brief conversation it appears there was definitely interest.
One thing to remember with Gruden is that the Buccaneers gave him a three year contract extension in 2008 that paid him roughly $6 million a year. Since they fired him, they still needed to pay his salary so he is still being paid $6 million this year, AND a salary from ESPN. So that could be the reason why he turned Ross down in January because it was a lot more work for the same if not, less pay. His Buccaneers contract ends after this season, so this appears to be the perfect time for Gruden to jump back into coaching.
I still prefer Cowher though, but Gruden would definitely be #2 of the big three.