It can and it might not. For CDD he has some tough decisions ahead of him on how to handle the situation. It is made worse for all the drama CLK made while he was at UT prior to leaving it for CDD. Stuff like this happens all over. Look at Penn State a few years back with the arrests involving football players and fighting, but because CJP stepped up and said he would take care of it, not much became national news because of the respect for him and the program. CLK sort of hurt that with his love of being the media poster child and now CDD has to deal with it.
Parents that were concerned before, for things that happened last year, will watch what CDD does to determine if it is the best place for their child. Will he quickly take control of the situation and how he handles it. That does not mean he has to kick anyone off the team, but he has to convince parents of future prospects that it will be a thing of the past and not tolerated.
In regards to other schools it really doesn't matter how they spin it. No offense but UT is still a few years away from recruiting as well as UF and UA. That does not mean they wont get there. Other schools like UGA, LSU, and USCe have coaches that this might be their last year so no matter how they spin it will not matter if they have a bad season and get fired. With the exception of Auburn who has been hot on the recruiting trail, they still do not have the tradition that UT does and Gus will probably leave for a HC job somewhere after the season and he is the main reason recruits are coming right now. The other 6 schools have no chance to out recruit UT. So at this juncture UT should be fine and I think CDD will take care of business so that most people will be content with his decision. The ones that do not, oh well and good luck to them.
Again that is my 2 cents for what it is worth as a UA fan.