In July 1988, it emerged that Palmer had signed with agent Norby Walters before his eligibility expired (he received monthly payments and a $5,000 loan). Temple forfeited all six of its wins from the 1986 season, erased all of Palmer's records from the books, and withdrew all of Palmer's athletic prizes and rewards. School president Peter Liacouras also ordered Palmer to reimburse Temple for his senior year scholarship. In a deal with federal prosecutors who were investigating Walters, Palmer agreed to perform 150 to 250 hours of community service. Years later, the school decided to recognize Palmer’s 1986 season, after he showed remorse for his decisions and their effects on Temple.