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The hardest thing to imagine here would be that a team would clean their hands of a coach by trading him within to a division rival.
With that said, this move would make sense for both sides. Tony Sparano wouldn't serve as Buffalo's head coach but as defensive help. He runs a 3-4 scheme that the Bills are trying to prefect.
If this deal happened, it could be thought of as protecting an investment for Buffalo as the team just selected 3-4 defensive lineman Marcell Dareus third overall.
Brad Smith can run the wildcat as well as anyone in the league. Buffalo's receiving options have proven to be better than projected coming into 2011 and Miami wouldn't mind picking up Smith's price tag.
Even if the Dolphins drop the wildcat, Smith would still provide explosiveness to an offense that needs it. He'd also serve as a backup quarterback.
A draft pick would be chipped in by the Bills because of the money the Dolphins would be taking on from Smith's contract. Chan Gailey would continue to get his offense to run the ball effectively while Sparano would get the defense to stop it.