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http://zagsblog.com/articles/memphis-forward-austin-nichols-gets-conditional-release/

Nichols will not be released to transfer to any American Athletic Conference school, any school on the Tigers’ future schedules and/or Tennessee, Providence, Iowa or Virginia, a source told CBSSports.com. Acording to The Commercial Appeal, Memphis will play in the 2016 Emerald Coast Classic with Providence, Iowa and Virginia. So that’s the explanation there. Tennessee is simply on a “restricted” list, according to an email a source told CBSSports.com the school sent to a UT official. Nichols’ sister is a Tennessee student.
 
http://zagsblog.com/articles/memphis-forward-austin-nichols-gets-conditional-release/

Nichols will not be released to transfer to any American Athletic Conference school, any school on the Tigers’ future schedules and/or Tennessee, Providence, Iowa or Virginia, a source told CBSSports.com. Acording to The Commercial Appeal, Memphis will play in the 2016 Emerald Coast Classic with Providence, Iowa and Virginia. So that’s the explanation there. Tennessee is simply on a “restricted” list, according to an email a source told CBSSports.com the school sent to a UT official. Nichols’ sister is a Tennessee student.

I hate this transfer rule. Coaches are allowed to leave anytime they want and choose any new job if they are offered more money, but if a player decides he doesn't like the situation he is in he is punished. I can understand not being able to transfer in a conference, the the Tennessee choice is just ridiculous. I read somewhere Gary Parish posted that Tennessee is on the "restricted" list just because:
"Gary Parrish ‏@GaryParrishCBS 20h20 hours ago
What’s hilarious is Memphis denied Tennessee as a possible “future” opponent. But Memphis has also said it won’t schedule Tennessee."
"Gary Parrish ‏@GaryParrishCBS 20h20 hours ago
True story: Memphis initially sent Tennessee an email saying it can’t contact Austin Nichols because UT is a future opponent. Naturally …
… UT responded by saying, “Um, no we’re not.” So Memphis sent another email saying UT is now simply on a “restricted” list. Just because."
 
I'm sure they blocked him from going to Duke too...

Duke was not mentioned as one of the conditions:

http://www.commercialappeal.com/sports/tigers/mens-basketball/memphis-grants-conditional-release-to-austin-nichols

The conditions of the release, according to a source, prohibit Nichols from accepting a transfer scholarship at another American Athletic Conference school or schools on Memphis’ 2015-16 nonconference schedule, or to the University of Tennessee. Also, Nichols can’t transfer to Virginia, Iowa or Providence — three schools that are, along with Memphis, in the field for the 2016 Emerald Coast Classic in Florida, tournament director Maury Hanks confirmed to The Commercial Appeal.
 
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