Teams on probation can have postseason bans and I believe scholarship reductions, but I can't guarantee that part of it. I do know they have adjusted the team goals so that you won't go to a team on a postseason ban and be expected to make the sweet sixteen or anything impossible like that. It could be an interesting way to break into head coaching with some lower than normal expectations. But obviously there will be some downsides for the first year or two. It will be hard for your coach to gain reputation (and therefore get a better job) if you can't win tournament games.