He said he'd come back if he had the right situation.
Thoughts?
Absolutely not.
Not if they want to recruit good players
Why? There are better options out there and UK needs to get it right this time.
I have to believe that UK is looking to hire someone who could be around for a while. Knight will be 69 years old before fall practice starts, so even if he does coach again, it likely won't be for more than a few years. As a result, hiring Knight could be viewed as a desperate short-term move, and I don't think UK wants to be perceived as desperate (even if they are).
If Knight coaches again, I suspect it would be either at a mid-major, or a team in a high-major conference that has not had much success for a while. In either case, the school would be looking to Knight to get them some quick notariety, which it would hope to parlay into longer-term success....
Knight is done at the Div 1 level.