Gray was a weird approach. He was fully committed to Sky and basically used the job offer to get a big bumper new deal off Sky. Would be like RS desperate to get in Hansen from BBC at same time.
From what I remember Sir Bobby Robson was the main target as he'd just been moved upstairs by Barca and his Newcastle spell a few years later showed he'd have been a really good choice. Think John Toshack's name was also floating, would've been more divisive for obvious reasons but again he was a very good manager in those times and would manage Real Madrid 18 months later.
Those moves all fell through and so Kendall was the desperate fall back option which I think everyone early on that season knew was the wrong move.