Crap. Schefter is usually right about these things. But he definately does not know the language of the contract, so naturally there may be a clause that voids the deal if he does not take this team to the playoffs or post a certain record.
But if it is announced that he is extended there will be a fan uproar and possibly a drop in season ticket sales. Ralph isn't stupid and I believe the reports that say he is livid with this team's performance are valid. Odds are he won't want to eat Jauron's contract and may let him stay, but it's hard to imagine him letting the Bills achieve mediocrity for three more years.
Who knows, maybe hell will freeze over, we'll circle the wagons, rally the troops, win out, go 10-6, have other teams fold and squeak into the playoffs.
Something's gotta give.