The comments from Saul are pretty telling. The fact that he and the staff were blindsided by this and not much explanation other than a "gut feeling" makes me think he might end up somewhere Ohio doesn't want him to.
What, if any, limitations can really be placed on a kid who is released from a scholarship in terms of transfer destinations? If he ends up at UM, I'm not really concerned. On the other hand, I'd be bothered to see him at another MAC school.
They (meaning the coaches) technically can't place any limitations on where the athlete transfers. They can, however, refuse to grant their release, which will hinder their ability to land a scholarship. So really, if a coach didn't grant a release, but the kid left anyway, both parties would be suffering. The coach loses a scholarship to give to someone else and the athlete who left now has to both sit out a year and pay his way at the other school.
In other words, the restrictions aren't really restricting anything unless the release isn't granted. I'm sure before they sign the release there is some type of gentleman's agreement saying something like "just don't go to XXX school," but who knows?
Football is different animal. Remember a few years ago when the Michigan kid transferred to OSU and ended up being All Big Ten? Ouch.
But like you, I would be extremely ticked if RT ended up at another MAC school.