Lakeville Goldy
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Yes. I believe they can be removed at any time for "violation of team rules".
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Scholarships are year to year. They can choose not to renew for any or no reason. That rarely happens to recruited scholarship players because it sends a bad message ("Come to the U of M! We might revoke your scholarship after two years after using your redshirt year which would mean you'd have to drop to D-II or lose a season of eligibility if you want to be a scholarship player elsewhere..."). You do see it with walk-ons that get a scholarship, especially those that won't start their 5th year.
For example, I couldn't believe Coach Kill gave Moses Alipate a fifth year under scholarship (recruited player). He had ignored JK about his weight and had zero chance of seeing the field. But JK honored it even though he didn't have to under any rule. The other example is Rhoda who had been a walk-on and wasn't going to get a scholarship for his fifth year. I believe that's changed now.
That said, with an incident like this I have to think the main four have zero chance of retaining their scholarships. The other 5 it really depends on what the findings are. If it's just that they deleted some texts but weren't there and weren't involved, I could see them keeping scholarships. If it's anything more serious then probably not.