I think some of you are making too much out of this. It looks to me like one of those situations where the coach gets caught sending a text message to a recruit when he's not supposed to. AD knows the NCAA is going to do some excessive punishment if he just lets it go so he issues a public reprimand, takes away a punter scholarship, and pays a small fine. Behind closed doors he tells the coach that he doesn't give a eff what he does, just don't get caught again.
This "Big 12 Commision" was probably giving a do something or else ultimatum so the administration released this letter with a bunch of stuff the lawyers told them to say and gave the band a slap on the wrist.
Think about it, a $5k fine that could be paid with gofundme if they so choose, Tracz can't go to the KU game, and prior approval (which amounts to someone asking if it includes another team's mascot or unintentional genitals) is not much if the conference was going to try and Roger Goddell us.