Trust me, that kids family is going to get a lot more than $7,500. There is no chance ND is going to fight it, and try to pay off as little as possible, they don't want anymore negative press surrounding this story.
Somebody at ND is going to be in deep doo doo for this, the only question is who. Given the pull the boosters have up there in South Bend, if Kelly and/or Swarbrick is on their target list, I'd say it's not looking good for either one of them. They defacto run that program up there, and have for years. If they want you gone, you're gone. Just ask all the coaches who have been fired over the years.