The association said in a release UCF "exhibited a lack of institutional control and was responsible for impermissible recruiting activities and extra benefits" with a third-party outside recruiter.
The NCAA also hit the school with five years of probation, a $50,000 fine and reductions in scholarships for both sports.
Athletic Director Keith Tribble and assistant football coach David Kelly resigned in November amid the allegations, and men's head basketball Coach Donnie Jones was suspended for three conference games.
Professional recruiter Ken Caldwell provided impermissible benefits including tuition fees, transportation expenses and a laptop computer to student-athletes and prospective student-athletes between March 2009 and July 2011, the NCAA said.
2014: The Year in Music [PHOTOS]