In theory, the grad transfer exception is a good rule. However, I remember that a few years ago, Seth Greenberg, on ESPN, quoted the result of a study of grad transfers in basketball covering the first 4 years of the new rule. The number of grad students who had received a grad degree was--Zero. Now, I assume (hope) that this has improved, but the academic angle on this is simply a fig leaf.
That's why I applaud SU's own John Gillon, who did get his masters although he has continued with a professional basketball career.