Not "Catholic" Much Longer?

I can only conclude from this public statement of Bishop D'Arcy's (here with Fr. Z's worthwhile commentary) that the severing of Notre Dame's relationship with the Catholic Church is on the table. Tough stuff, here's just the conclusion:

In my letter, I have also asked Father Jenkins to correct, and if possible, withdraw the erroneous talking points, which appeared in the South Bend Tribune and in other media outlets across the country. The statements which Father Jenkins has made are simply wrong and give a flawed justification for his actions.

I consider it now settled — that the USCCB document, “Catholics in Public Life,” does indeed apply in this matter.
The failure to consult the local bishop who, whatever his unworthiness, is the teacher and lawgiver in the diocese, is a serious mistake. Proper consultation could have prevented an action, which has caused such painful division between Notre Dame and many bishops — and a large number of the faithful.

That division must be addressed through prayer and action, and I pledge to work with Father Jenkins and all at Notre Dame to heal the terrible breach, which has taken place between Notre Dame and the church. It cannot be allowed to continue.
I ask all to pray that this healing will take place in a way that is substantial and true, and not illusory. Notre Dame and Father Jenkins must do their part if this healing is to take place. I will do my part.