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If done right, this is a good thing for student-athletes. The reason the "one year sit out" thing exists is to stop chaos, rampant transfers from young players, and "poaching" by blue blood programs.
Speaking strictly about football for a second, the rules need to be as follows for this to work --
1. Transfers allowed during a specific period (with OVs allowed)... I'd say ideally before NSD, but that's hard to work with the logistics of the season and bowl games. So maybe you have a window from January 1 to January 15, and then a longer one over the summer. Or you push back the February NSD into March.
2. A cap on the number of transfers schools can take in a year... I'd cap it at 5 to start, and maybe that's high. You don't want this to become JUCO recruiting on steroids.
3. A requirement that transfers carry a 3.0 GPA, be in good academic standing, and have no arrests. You don't want flunkies dodging the fact that they're going to get kicked out of school -> withdraw from classes and transfer somewhere. You also don't want people getting a "do over" for crimes... where if their school punishes them for beating a woman or something, they can just say "screw you" and transfer to Oklahoma and play immediately.
The big issue will be policing tampering and bag men. This will be virtually impossible. You will see players like Josh Allen get hounded by bag men from the LSU's of the world and plucked from Wyoming... there will be massive tampering behind the scenes, even if not from coaches.