There's a lot to read in this thread yet, so it may have been addressed. But I listened to Stoops when he said this on KSR, so I think I can maybe clear it up some.
Stoops was adamant in saying, several times, "you can do this. It's legal", and he kind of hinted that the administration may have been saying the opposite. But over and over "this is legal". So there's nothing Barnhart can do about it. Nothing for him to allow. It doesn't concern him.
As far as how, I think it's against NCAA rules for the school (admins and coaches) to be directly involved. So this has to be organized by donors and boosters. And Kentucky is behind because business leaders in the community have been told by the athletic department not to do it because it will hurt the University.
So now the wheels are in motion, this will likely be settled in a couple weeks at the longest, and there will be more information about how.