The NCAA stripped Oregon of a scholarship in each of the next two seasons and placed the program on probation for three years, opting against stiffer penalties like a bowl ban despite issuing an 18-month show-cause order against former coach Chip Kelly.
The NCAA's Division I Committee on Infractions released a report Wednesday that said Kelly failed to monitor the program for its improper involvement with Willie Lyles and his Houston-based recruiting service.
Oregon lost an initial scholarship and had its total number of scholarships reduced by one from a maximum of 85 in 2012-13 through self-imposed sanctions.
It will lose another initial scholarship in 2013-14 and have its total scholarships reduced by one each of the next two years, also self-imposed.