Ummm....the report concluded that none of the coaches knew it was a "sham" class, though some knew they were "easy" classes. Read the report, rather than summaries.
http://3qh929iorux3fdpl532k03k...UNC-FINAL-REPORT.pdf
Moreover, even the very best academic institutions have "easy" classes, that are disproportionately attended by athletes...For example, Stanford:
http://www.stanforddaily.com/2011/03/09/1046687/
As Kyle said, it's obviously widespread. If you expect a "student athlete" to travel and work at a sport for 40 hours a week, even good students won't do as well. But when you accept marginal students because they are great at a sport, it's obviously going to be a problem.
Specifically regarding the UNC baseball program, the UNC Baseball team was specifically listed as not being involved with this, because they stressed taking courses that required attendance rather than just independent study/paper submission.
e. Baseball Personnel
The baseball coaches similarly professed little knowledge about the AFAM paper classes, although two baseball players told us that the paper classes were common knowledge among their teammates. Head Baseball Coach Mike Fox explained that he had no knowledge of the paper classes or any other course that was designed to keep student-athletes eligible. Fox knew that Chapel Hill offered independent studies, but he discouraged his players from taking them, preferring that his players physically attend class. Fox stated, and his assistant coaches and former players confirmed, that he places an emphasis on academics and would bench his athletes if he learned that
they were not attending class. Assistant Baseball Coach Scott Forbes explained that the team has a strict class attendance policy, and it is well known in the baseball program that if you do not go to class, you do not play. Forbes claimed that he was generally aware of what classes his players were taking, although he did not recall any student-athletes taking AFAM courses.