The university of Oregon announced Friday that it dismissed guards Damyean Dotson, Brandon Austin and Dominic Artis from the team.
All three players were named in a police report about an alleged rape that occured March 8. The case has since been closed and no charges were filed.
"It was very clear to us that those were individuals we didn't want representing our organization," athletic director Robert Mullens said.
Oregon president Michael Gottfredson said the school will use an outside committee to review the program's recruiting methods.
"As the president of this university I am angry and disappointed," Gottfredson said. "We would like to say more but we are not going to violate the laws that protect student privacy."
Gottfredson also said the school "took immediate action" when it found out about the alleged incident "but complied with Eugene Police's request not to do anything, including suspend players." The Eugene Police Department, however, said it did not instruct the school to delay disciplining the players.
Mullens said he and coach Dana Altman did not know which players were involved at the time they learned of the alleged incident but when they saw the police report April 30, the three players were suspended within 24 hours.
Mullens said Altman's job is safe.
The athletic director also said he was not aware of an ongoing investigation of a sexual assault claim against Austin from last November, when Austin was at Providence. Austin transferred to Oregon in January after receiving a one-year suspension at Providence.