Are you sure that holds true with a player that is dismissed as well as those that leave on their own? I thought it didn't apply when a team flat out dumped a student athlete. If it does apply that is entirely fucking stupid. He didn't bail on the program, the program dumped him. He should be free to go anywhere he wants after being dismissed.
I'm no expert on it. But I'm fairly sure that since they dumped him, he can go wherever he wants, play right away and not lose eligibility. Essentially, they yanked/didn't renew his scholly which essentially makes him a free agent.