It may. But I think the university is concerned with more than the legality of this jump. I do think the university is concerned with keeping everyone safe. Not only because they care about their students, but public perception would not be kind to the school if someone were to be seriously injured. I don't think the blow back would come from students, alums, and those familar with the tradition, but others outside. Simply pretending its not happening, or not attemptign real controls will not be enough
These solutions would not cover the non-students who choose to jump, which I think is one of the schools biggest concerns, as they have little to no measure of accountability on non-students.