Two things. We can all speculate that shenanigans are afoot with all the pics of this guy and his involvement with so many players. I personally don't get into worrying about that stuff and as publicized as this has become, I imagine it'll come out in the wash if illegal benefits are being passed to the playas. As for the cease and cut that shit out letter, it has little or no bearing on the proverbial hammer dropping on the Tahd. First, it's like a copyright/trademark infringement and they're simply saying you can't use our shit or our players likeness etc. to promote your product or make money. The letter says that it could affect the players eligibility unless the university takes steps to stop it. Here, they are taking steps to stop it. As long as they stay on the guy, there won't be any problems with player eligibility.
I will say, they'd better worry less about memorabilia and more about why so many players are chummy with a dirty old man who obviously gets wood by feeling like a big dog.