I saw the text, rent for the student-athlete is included in the scholarship. I don't know if utilities can be combined with the rent, but they also receive "personal & miscellaneous" money which can be used for anything. Instead of handing out a check to the players, they may pay for bills. Under the new cost of living rules for the Power 5, nothing illegal is shown from the texts. Especially the case if he is talking to an AD; if it was a coach then it would be more suspicious. There are also athletic foundations set up to help student-athletes pay for housing and educational needs. 

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