UPDATED THURSDAY, 7:30 a.m.: Scott Wolf of the Daily News says the NCAA will host a teleconference to discuss the investigation into USC at Noon PT Thursday. Expect a response from the University shortly after. ATVN.org will continue to follow this story throughout the day.

A source with inside knowledge of the NCAA report delivered to USC told the Los Angeles Times that the Trojan football team will be declared ineligible for bowl games for the next two seasons and will face a major reduction in scholarships as a result of a four-year investigation into the USC athletics program. ATVN sources have also confirmed that these penalties, and potentially more, will be formally announced tomorrow.

Another source told ESPN that the school would also be forced to forfeit wins from the 2004 season, in which the Trojans won the national championship.

If the reports are correct, the penalties would be much more severe than many in and around the athletic department had expected. Once the sanctions are officially announced, the school will have the chance to appeal the NCAA’s ruling.

The NCAA report centers on violations related to former Trojan football star Reggie Bush and basketball player O.J. Mayo. The basketball program penalized itself with similar penalties to those imposed by the NCAA last season as a result of violations committed during the Tim Floyd era.

According to reports, the players will be briefed Thursday and a statement will be released by the school.

USC has declined to comment until after the official announcement is made by the NCAA.