A source very close to the NCAA has confirmed that USC will have their recruiting sanctions removed, essentially saying the bowl ban is sufficient.
This is pretty shcokcing and I figured you guys would want to get the salient points:
1. After reviewing the USC appeal, the NCAA has decided that the bowl ban was sufficient punishment and will reinstate the scholarships
2. Primary justification was made based on the Cam Newton situation with Auburn, with one NCAA official being quoted as saying, "[Although] the specifics may have been different, the nature of the two incidents was similar enough to where we could simply not apply such drastically different actions to the two schools."
3. An off-the-record statement by the same NCAA official indicated that the current matter with Oregon and Ohio State was also a mitigating factor, saying, "Handling the current matters [with Ohio State and Oregon] will be much easier if we make this move [lowering the sanctions] with USC, since we won't have to deal with the potential PR nightmare of having to explain why we handle one place one way and another differently."
You can read the whole sordid thing here