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The only thing the NCAA can really do is punish the school. The school is ultimately responsible for the conduct of players and coaches. It discourages boosters from paying athletes because all it does it hurt the school for a lengthy period of time.
So with that said, I do not beleive that there is any problem with doing this to the school as long as the athletes are permitted to transfer if they wish to.
Also with that said, I believe that coaches should have an NCAA mandated clause in their contracts that should they move to a lucrative NFL job (or whatever professional sport), and the NCAA discovers infractions directly tracable to him or his staff, that the are responsible for a certain amount of monetary damages to the university.
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