How did it hurt the Dolphins giving Sparano a new contract ? Is that a serious question ?
Sparano still got fired, and smoothing things over with Tony while removing the 'lame duck' tag hurt things how? It's his money. Ross spending a bit of his money to try to mend a damaged situation doesn't hurt the team, it hurts Steve Ross's pocketbook.
His mistake there was keeping Tony, but I understand why he did it, with the lockout in place at that time.