We've been talking to him for a while apparently and I'd assumed it was part of a potential deal with Mourinho. Obviously that (JM) isn't going to happen so we must be talking to him on his own account.
I know he was well-liked at Chelsea but am not too sure how much input he had into coaching. Story is it wasn't too much and his role had more to do with player relationships than actual coaching. Abramovich might have sacked him because he was worried he was too close to the players. Heard some stories about drinking as well. Allegedly.
If he is coming in i could see it being as a replacement for Kidd, who I think is also largely responsible for looking after the players and in his 60's now.