His explanation is plausible in that he said he refers to people who lie as having rubber lips and that was an extension of that. Said he has no racist intent and apologized.
don’t think this will cost him his job
quotes from ESPN article
Gruden told ESPN he has routinely used the term "rubber lips" to "refer to a guy I catch as lying ... he can't spit it out."
"I'm ashamed I insulted D. Smith," Gruden said, adding, "I never had a racial thought when I used it. ... I'm embarrassed by what's out there. I certainly never meant for it to sound that bad."
The email, sent to the president of the Washington Football Team as the NFL and its players were in the midst of trying to resolve a lockout, said that Smith had "lips the size of michellin tires," the Journal reported, saying it has reviewed the email.
Asked about the email by the Journal, Gruden said he didn't specifically recall writing it, but apologized.