"I don't think it could be done, based on the fact that people have worked hard and spent lots of money to get to their dream schools."
In real life actual franchises have been contracted, so if it can be done in real life it can be done in a pretend game especially if in the long run it makes the game more enjoyable. Alblack's idea is the way I would think it would be or should be done. Make every effort to give those who had their school taken away from them the same team and same players in another world. The biggest obstacle to this is the D1 schools, unlike D2 and D3 and even the lower levels of D1 where odds are in the 10 worlds every school is open in at least 1 there is no world where the likes of UCONN, Duke, UNC, UCLA, Kentucky etc., are open. So if you take Duke away from somebody it may take a whole lot to keep them around in the game, 20 free seasons might not even be enough.