It's kind of like the apartment owner of a 30 unit building being found responsible for the parents of one of their tenants who may have broke a law though the apartment owner never had anything to do with it.
I would take this to the real court if I were USC.
I think a LOT of this is political.
FWIW, universities spend a lot of time with players telling them what they can and cannot do. The players understand fully what the rules are and once a university learns of an impropriety, they are required to report it. What is hinted at in this penalty, and most negotiations include some confidentiality, is that USC knew of Bush’s acceptance of money and a place for his family to live, all in exchange for him agreeing to all this guy to be his agent. These schools know exactly what’s going on with these players.