D1 football, for all its history and pageantry, is a cut-throat business, and as most know, not altogether pristine. So, while he may have had some improper conduct, scholarship players can be released at any time, for most any reason. When I played in early 80 and mid 80s, most programs honored the athletic scholarship as a five year commitment (4 years to play 5). So, even if a player did not pan-out, he would keep his scholarship–in many programs, that is no longer the case.
At present, a change of coaching staff or even scheme may result in a player losing his scholarship…