You can send scholarships as frequently as you'd like.
More importantly, scholarships are renewable on an annual basis. You can pull scholarships (as happens all the time, such as for disciplinary reasons).
However, if you start pulling scholarships solely based on performance, the P.R. blowback will be comparable to Hurricane Andrew.
Manny's pretty creative and aggressive, but I don't think he is angling to be the first Division I coach to pull the scholarships from kids who have done everything they are supposed to do, academically and personally, but are simply not as good on the field as we anticipated.
Hey, OP, have you tried sticking your head in an alligator's mouth? Just curious.