I understand the context of the use of "Illegal". The phrase just doesnt sit right, and when emphasized like the op did in his post, the context does indeed go beyond the "violation of league guidelines". But enough about that.
As for your other point, I have read the agreement, and will provide a link to the agreement below. Section1, paragraph b indicates that Matt Malsh/his attorney has the right to keep a copy of the materials turned over to the league.
here is a copy of the agreement
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http://assets.espn.go.com/media/pdf/.../agreement.pdf