The former Indiana and Texas Tech basketball coach, and an Ohio State alum, spoke to reporters Monday night before the Henry P. Iba Citizen Athlete Awards ceremony, where he was scheduled to deliver the keynote address.
"I understand what's happened and there was a rule that was violated," Knight said. "But it was an idiotic rule."
Five Ohio State players, including star quarterback Terrelle Pryor, were suspended for the first five games of the upcoming season after it was revealed they traded jerseys, rings, trophies and other items for tattoos.
"I think this NCAA that we're currently involved with is so far out of touch with the integrity of the sport that it's just amazing," Knight said.
Jim Tressel recently resigned as Ohio State coach after he admitted to withholding information from his bosses and the NCAA about his players receiving improper extra benefits.
The Iba Awards, named in honor of the Oklahoma State's Hall of Fame basketball coach, recognize positive role models in sports. NFL star Jason Taylor and former women's international soccer star Kristine Lilly received the awards Monday night.
Knight, who now works as an analyst for ESPN, said he was glad his days of roaming the bench are over.
"The microphone, to me, is like the whistle is to an official," Knight said. "Now I just simply say,
'Now that is one of the worst calls I've seen in basketball.' I love the microphone."