You're right, it's the system. The NCAA does not allow schools to give out multi-year scholarships - every scholarship is for one year only and renewable on an annual basis. But many schools oversign players, including national champion Louisville: http://collegebasketballtalk.nbcsports.com/2012/09/20/pitino-lands-4th-2013-recruit-why-isnt-there-more-oversigning-outrage/ According to this article, 22% of NCAA basketball players each year leave their program for reasons other than graduation or turning pro: http://www.crimsonquarry.com/2012/5/17/3027143/indiana-hoosiers-and-the-oversign-tom-crean-plays-the-numbers-game Oversigning goes on all over in the NCAA, but the 22% non-graduation/pro attrition rate usually prevents it from becoming an issue. If you look at what happened to Buzz, he had injuries (Otule, McMorrow), players transfer due to family issues (Mbakwe), playing time (Maymon, and apparently as of yesterday Ferguson), injuries/playing time/homesick (Williams), and had players quit (Roseboro, Smith, Taylor). He has been playing with a short roster most of his first few seasons (10 most of last year, 11 the year before, 9 the year before that, 10 the year before that) and likely wants to prevent that from happening again. The risk is having one too few scholarships. Happens other places, we just don't hear about it. Ferguson's transfer means that Otule can come back without any issues with scholarships for next year.