You make great points about which I don't care.
In practice, the UTEP players wouldn't pay the penalty because the UTEP AD wouldn't have hired Floyd, and Kentucky wouldn't have hired whatshisass. There is a certain level of institutional control that should fall on the coach. If you'd like, we could limit the coach sanctions to situations where the coach was directly involved.
Would that make you feel warm, fuzzy, and in a party mood?