I like that the smart kid wants to come to UT, but PWO players don't pay their own way. They typically get a full ride, just like the other 85 players do. The difference is that it is not a football scholarship, or even an athletic scholarship. In this kid's case, it is easy because he likely qualifies for full ride academic $, but even if he didn't and they wanted him, they would find him an existing program or make something up like basket weaving(old joke). As long they the PWO does no step on the field during a game, it is fine. As soon as a PWO enters a game, they must be converted to a football scholarship. It works the same way if they are a multi-sport athlete and are on scholarship for another sport, but step on the football field. They, too would then be required to convert to one of the 85 football scholarships.
I think it is a great deal. A bunch of kids get a free education and can participate in the football activities, practice, work hard and perhaps, someday develop into someone who can play in games and earn a football scholarship in doing so. The football program gets to hand pick a practice squad with guys that also enhance their locker room with guys who possess high level skills that could develop into a game day player. The program can afford to take PWO risks on guys who are younger, have not played very long but show promise, have not been developed very well in HS, or who look really good but are a step slow, an inch or two short or who have not yet put on enough weight. It's a win-win.