Could it be that 6 Big 10 Schools, including Iowa, didn't think the rule applied since they hadn't enrolled and the scholarship "clock" hadn't started.
It's common knowledge once the athlete is in school but...
I think this is probably the case and that is why these other schools were setting up visits and so forth. Since they had not started classes and had only signed the LOI, was it really considered a "transfer." Obviously this is something that the majority of the Big Ten basketball coaches didn't know.
Also, I believe Jon said that Barta is going to release them to whatever school and leave it up to the Big Ten itself to determine if the waiver will be allowed. Iowa's hands are clean on this one and if they get an unfavorable ruling from the conference, then it's on them, not us.
Personally, I think in this situation with a LOI signed and a coaching change happens, then the recruit should be able to go to any school as long as the school releases them fully. Afterall, the are still a recruit, not yet a student-athlete. Once you become a student-athlete, I have no problem with the rule as it is.