Recruiting... even in basketball... offers are made to sophomores and juniors ALL the time... hmmm I would offer you a scholarship but I don't have a contract for then but if I do, I would love for you to join me... don't think that would work.
The contract is not really an issue, no matter what the decision. The contract is between the coach and the university, describes financial legal terms, and even within those, it is mostly the guarantees and buyouts that matter. Groce is in no position to dictate those terms, so it does not matter.
As far as recruiting, I have been around AAU Div. I recruits for many years, and recruits don't really know the actual terms of the contract. You think that last year's recruits signed because based on Groce's contract they knew he was going to be there for 2-3 years? Huh? And next year's recruits recruits will not because he only has 2 years left from the time they sign?
Whether they perceive a coach is safe is a different story but the actual contract, even if Groce is extended, will not be much of an issue. Recruits know very well that a coach can get fired, no matter how may years are left on his contract.