As per Wikipedia:
SMU football, 1986-88
See also: Southern Methodist University football scandal
SMU football had already been placed on three years' probation in 1985 for recruiting violations. At the time, it had been on probation seven times (including five times since 1974), more than any other school in Division I-A.[2]
However, in 1986, SMU faced allegations that players were still being paid. An investigation found that 21 players received approximately $61,000 in cash payments, with the assistance of athletic department staff members, from a slush fund provided by a booster. Payments ranged from $50 to $725 per month, and started only a month after SMU went on its original probation (though it later emerged that a slush fund had been maintained in one form or another since the mid-1970s). Also, SMU officials lied to NCAA officials about when the payments stopped.
While the school had assured the NCAA that players were no longer being paid, the school's board of governors, led by chairman Bill Clements, decided that the school had to honor previous commitments made to the players. However, under a secret plan adopted by the board, the school would phase out the slush once all players that were still being paid had graduated.[3]
As a result:
The 1987 season was canceled; only conditioning drills (without pads) would be permitted until the spring of 1988.
All home games in 1988 were canceled. SMU was allowed to play their seven regularly scheduled away games so that other institutions would not be financially affected. The university would ultimately choose not to do so (see below).
The team's existing probation was extended to 1990. Its existing ban from bowl games and live television was extended to 1989.
SMU lost 55 new scholarship positions over 4 years.
The team was only allowed to hire five full-time assistant coaches, instead of the typical nine.
No off-campus recruiting would be permitted until August 1988, and no paid visits could be made to campus by would-be recruits until the start of the 1988-89 school year.
The infractions committee cited the need to "eliminate a program that was built on a legacy of wrongdoing, deceit and rule violations" as a factor in what is still the harshest penalty ever meted out to any major collegiate program. It also cited SMU's past history of violations and the "great competitive advantage" the Mustangs had gained as a result of cheating. However, it praised SMU for cooperating fully with the investigation, as well as its stated intent to run a clean program. Had SMU not fully cooperated, it would have had its football program shut down until 1989, and would have lost its right to vote at NCAA conventions until 1990.[4]
All recruits and players were allowed to transfer without losing eligibility, and most did. On April 11, 1987, SMU announced its football team would stay shuttered for 1988 as well, citing the near-certainty that it wouldn't have enough experienced players left to field a competitive team.[5] Their concerns proved valid, as new coach Forrest Gregg was left with a severely undersized and underweight roster comprised mostly of freshmen.