Actually the timing of this makes perfect sense if you think about it. Clearly Butch is not the top choice, but he's in the mix. They are looking at him as a fall back option. That means you keep him in the process and vet him properly, but you try to slow play him a bit while you wait to see if any of your top choices are interested and/or available. Im sure they have been keeping tabs/ sniffing around guys like Chip Kelly and Pagano, which may not be possibilities yet or at all. The longer they can wait to see if one of those guys becomes possible, while keeping Butch on the hook, its actually the best play for UM.
All this means is that Butch is on the "Maybe" list, but he's not the main candidate. But he's being looked at as a real possibility if the wish list guys don't pan out.