Cal's Bill Tyndall Plaintiff in anti-trust lawsuit against NCAA

8,697 Views | 72 Replies | Last: 12 yr ago by KevBear
CalLifer
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Argues that NCAA unlawfully capping compensation for players.

http://espn.go.com/college-sports/story/_/id/10620388/anti-trust-claim-filed-jeffrey-kessler-challenges-ncaa-amateur-model
59bear
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Lost in all the dust stirred up by various legal actions allegedly on behalf of "exploited" athletes is the real possibility that college athletics may well be history at a lot of schools. It's one thing to leverage a sweetening of the scholarship pot to more adequately fund the full cost of attendance. OTOH, a successful suit to have athletes declared employees (unionized or not) would likely lead many, perhaps most, schools to simply drop athletics. There is no question that huge sums of money are involved; that relatively little finds its way directly to the athletes; that coaches, administrators, NCAA execs and the media represent the 1% in this economic sub-set. But with so few schools actually turning a profit on athletic programs, where is the incentive to take on a huge obligation (workers' comp, benefits, etc.) represented by "employed" athletes?
CalLifer
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59bear;842293502 said:

Lost in all the dust stirred up by various legal actions allegedly on behalf of "exploited" athletes is the real possibility that college athletics may well be history at a lot of schools.


I tend to agree, especially for the big-money sports (FB/MBB), and as those sports are what fund the rest of the department, those would probably be lost as well. If this suit or any suit like it is successful to any degree, it's tough to see how it doesn't force the creation of a minor-league like structure for FB and BB, since it'd be tough to see schools getting into a system that actually pays the players a market rate.
71Bear
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The financial model is completely out of whack. In the NFL, excluding the injury compensation piece, a model has been brokered that benefits everyone. In college, the financial model benefits only one segment of the equation - coaches and administrators. Athletes are left with scraps.

Sooner or later, the model will collapse under the weight of this greed. While I don't believe college sports will cease to exist, I do believe that we will see a significant change in how business is transacted.

A great start would be a downsizing of all sports and the creation of semi-pro leagues that could act as a feeder to the pros for individuals who are not academically-inclined.
93gobears
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I have yet to form an opinion on this matter, but the lawsuit is filed by Winston & Strawn. A heavy hitter corporate law firm out of Chicago.

Link.
Darby
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71Bear;842293515 said:

The financial model is completely out of whack. In the NFL, excluding the injury compensation piece, a model has been brokered that benefits everyone. In college, the financial model benefits only one segment of the equation - coaches and administrators. Athletes are left with scraps.




A special admit and full ride to a Cal or Stanford is worth well into the six figures. That is hardly "scraps" for a 18 year old.
slider643
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Darby;842293522 said:

A special admit and full ride to a Cal or Stanford is worth well into the six figures. That is hardly "scraps" for a 18 year old.


It's worth way more than that if you NPV future earnings delta (assuming the athlete graduates and uses his degree).

Personally, I wouldn't support the new structure and I doubt there are many fan bases outside the SEC who would support professional athletes representing their school.
71Bear
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Yep, scraps as compared to the multi-billion dollar TV contracts.

Given an athletic scholarship does not include the full cost of attending college, I suggest its value is less than you suggest.

And, the grad rates of athletes, particularly those with a low income background is abysmal. What do they have to show for the work they have put in for "dear ol' Alma Mater"? Nada...

Let's not kid ourselves. College athletics is a huge industry. It is no longer a mom and pop operation. IMO, the workers are being exploited and should be paid a living wage...
wifeisafurd
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93gobears;842293516 said:

I have yet to form an opinion on this matter, but the lawsuit is filed by Winston & Strawn. A heavy hitter corporate law firm out of Chicago.

Link.


A law firm that has the capacity to withstand the blizzard of paper coming from the NCAA and related parties, and years of protracted litigation. Most people think that a lawsuit means quick change - it typically means wearing down a plaintiff and reaching a confidential settlement, absent compelling outside factors (see the NFL and bad publicity on player injuries leading to a recent settlement by the NFL). If this lawsuit changes things, it will take a long time (assume decades), but the lead law firm for the plaintiffs has staying power.

Bill Tyndall, btw, was going to law school last I talked to him, and may even ultimately help out in this case. Impressive kid.
71Bear
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Given the amount of legal action currently pennding, I suspect that we will see something break sooner rather than later. The NCAA and Big Five conferences have deep pockets but I'm not certain they are deep enough to pay the legal bills for all these lawsuits....

My prediction... By 2020, we will see a completely different structure...
heartofthebear
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It's high time for legal and structural reform but those changes will not do damage to college football nearly as much as NFL $$ has. As of now, Universities have virtually no leverage against the salaries promised to their players by the NFL. Even an undrafted free agent can do better economically in the NFL than they can with a college degree, and that includes Cal in most cases. It's a miracle every time a player stays to complete his degree.

Most big time college football programs are using their schools as a cover to run de-facto minor league football programs. In these cases, where many players don't even have a high school education, the schools should be required to pay their players.

So it's very simple, act like a school and require educational performance or act like a non-school and pay your players. The NCAA could establish standards to evaluate this very easily if they wanted to. But they are too busy counting their ESPN dollars to give a rat's ass about it.

And the APR and graduation rate standard is no standerd at all since the school's themselves vary widely and the work required to advance academically.
going4roses
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gready NCAA ...no college football video game in 20yrs grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr


geez can we raise the price of game 10-15 each and that goes 100% to the college players like a check when u leave school for the amount of yrs u played and maybe lil extra to those that can stay the full 4 yrs
beeasyed
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going4roses;842293589 said:

gready NCAA ...no college football video game in 20yrs grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr


geez can we raise the price of game 10-15 each and that goes 100% to the college players like a check when u [U]leave school[/U] for the amount of yrs u played and maybe lil extra to those that can stay the full 4 yrs


and that'll only intensify the problem. you'd be adding yet another incentive to leave school as soon as possible.

part of the issue is that they don't have enough money WHILE they're in school (leading some players to sell memorabilia, autographs, etc.). if you're advocating stipends or payments for athletes, i would suggest that they're distributed in reasonable amounts every semester contingent on good academic standing.
going4roses
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beeasyed;842293599 said:

and that'll only intensify the problem. you'd be adding yet another incentive to leave school as soon as possible.

part of the issue is that they don't have enough money WHILE they're in school (leading some players to sell memorabilia, autographs, etc.). if you're advocating stipends or payments for athletes, i would suggest that they're distributed in reasonable amounts every semester contingent on good academic standing.



well modify it to where they are not broke ....
59bear
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I think you overestimate the value of a job in the NFL when you assume a player is better off economically as an undrafted free agent than staying in school for a degree. Undrafted free agents are at the bottom of the NFL salary pyramid. The average life span of an NFL career is something like 2-3 years, probably less for those not drafted. And whatever they sign for, only a small number of NFL contracts are guaranteed to any extent, most not at all.
RighteousGoldenBear
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59bear;842293603 said:

I think you overestimate the value of a job in the NFL when you assume a player is better off economically as an undrafted free agent than staying in school for a degree. Undrafted free agents are at the bottom of the NFL salary pyramid. The average life span of an NFL career is something like 2-3 years, probably less for those not drafted. And whatever they sign for, only a small number of NFL contracts are guaranteed to any extent, most not at all.


Agree. Free-agents make more $$$ right out of college than the average college graduate. However, based on average NFL career, that income quickly drops off, at which point, someone with a college education, in the right field, starts making more than a player no longer in the NFL. This is my gut feel, could be wrong. I hope all of our Bears go on to be successful in whatever they do and leverage the Cal degree to the max.


:gobears:
gobears725
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id value a football scholarship at roughly 25,000-35,000 per year at Cal. Is it not inconcievable that someone like Tyndall who hardly played during his time here, was in fact overpaid for his services relative to his production?


think he should think twice before fighting this fight. its not his fight to fight.
CALiforniALUM
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slider643;842293543 said:

It's worth way more than that if you NPV future earnings delta (assuming the athlete graduates and uses his degree).

Personally, I wouldn't support the new structure and I doubt there are many fan bases outside the SEC who would support professional athletes representing their school.


How is holding up CAL and Stanfurd as the example at all useful to really understanding the true value of the educational opportunity? Most athletes at other schools don't get such a great deal. One could argue that most of Cal and Furds athletes also don't take advantage of it. To me this all hinges on the NBA. They need to figure out another non scholastic pathway for players or make a rule that players must stay in school through at least their junior year.
heartofthebear
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RighteousGoldenBear;842293612 said:

Agree. Free-agents make more $$$ right out of college than the average college graduate. However, based on average NFL career, that income quickly drops off, at which point, someone with a college education, in the right field, starts making more than a player no longer in the NFL. This is my gut feel, could be wrong. I hope all of our Bears go on to be successful in whatever they do and leverage the Cal degree to the max.


:gobears:


OK, but it still makes more sense to leave school early, take a shot at the NFL and then return to school later if they don't make it. If they are smart and frugle, they can use the $$ they make to fund the rest of their education without needing the scholarship.

In any case we're only talking about the fringe players. Most other players can definitely do better leaving early for the NFL. Guys like Moala and K. Jackson may have made a mistake. But even Rodgers probably will do better from a strict economic standpoint.

Does anybody now what C. Anderson got from the Broncos for an annual salary?
Better question: What is the average annual income for undrafted free agents who sign with a team?
That info. will help elevate this discussion.
But the point I'm making is that the NFL has grown to where this becomes part of the discussion.
30 years ago, folks weren't leaving early for NFL careers.
71Bear
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The 2014 Minimum Salary for an NFL rookie (regardless as to whether he was drafted or signed as a free agent) = $420,000. The minimum scale slides according to tenure. For a 10 year vet, the minimum is $955,000.
gobears725
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When I break it all down. If it were a job, a scholarship valued at 35,000 per year breaks down to roughly about 12 dollars an hour.
GB54
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gobears725;842293683 said:

When I break it all down. If it were a job, a scholarship valued at 35,000 per year breaks down to roughly about 12 dollars an hour.


Except it's not taxed and it's not full time
59bear
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Your model may work if the player involved makes a team. Unhappily, the vast majority of free agent signees get cut. So now, our hero is driving a beer truck or working as a security guard in a mall. He can go back to school and work on that degree but on his own dime, having forfeited the scholarship. To me, leaving early only makes sense if there is a reasonable chance of being drafted. If you're likely to be a free agent, stay a year (most early outs are juniors by eligibility), get the degree and then take your flyer on free agency.
gobears725
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GB54;842293694 said:

Except it's not taxed and it's not full time


duly noted, when it comes down to it, a scholarship at roughly 35,000 per year is worth more than what some people's jobs are worth. probably some teachers for example. perhaps they should be paid and that the current model of college football isnt fair, but i can think of many more things much less fair than whether college football players get paid.

If theyre going to have all this money being made, first and foremost the thing that they should do is set up some kind of health care for football players to cover their medical expenses from playing. Quite honestly, if they make it extensive enough, I would think that it would cover all of the players share.
heartofthebear
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59bear;842293695 said:

Your model may work if the player involved makes a team. Unhappily, the vast majority of free agent signees get cut. So now, our hero is driving a beer truck or working as a security guard in a mall. He can go back to school and work on that degree but on his own dime, having forfeited the scholarship. To me, leaving early only makes sense if there is a reasonable chance of being drafted. If you're likely to be a free agent, stay a year (most early outs are juniors by eligibility), get the degree and then take your flyer on free agency.


Trouble is, you're doing different math than the player's advisors are doing. And at Cal, it's clear that there is a 3rd factor. Many players may feel they won't be able to get the degree even if they do stay because the upper division work is too difficult. It was written in one of the recent reports that some of the harder classes are put off until senior year. At that point the play leaves for the NFL instead of staying for the degree.
59bear
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Academic failure, real or imagined, puts an entirely different slant on things. Someone headed out the door anyway might as make a grab for the brass ring. I know it's a different world than when I attended but, for me, upper division classes weren't appreciably more challenging than lower division.
slider643
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CALiforniALUM;842293656 said:

How is holding up CAL and Stanfurd as the example at all useful to really understanding the true value of the educational opportunity? Most athletes at other schools don't get such a great deal. One could argue that most of Cal and Furds athletes also don't take advantage of it. To me this all hinges on the NBA. They need to figure out another non scholastic pathway for players or make a rule that players must stay in school through at least their junior year.


I think you're mixing up your posters. I didn't say anything about a Cal or furd degree. I'm just saying the earnings NPV of a college graduate vs someone without a degree is substantial.
gobears725
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59bear;842293761 said:

Academic failure, real or imagined, puts an entirely different slant on things. Someone headed out the door anyway might as make a grab for the brass ring. I know it's a different world than when I attended but, for me, upper division classes weren't appreciably more challenging than lower division.


i felt like upper division classes were easier than lower division classes
72CalBear
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heartofthebear;842293585 said:

It's high time for legal and structural reform but those changes will not do damage to college football nearly as much as NFL $$ has. As of now, Universities have virtually no leverage against the salaries promised to their players by the NFL. Even an undrafted free agent can do better economically in the NFL than they can with a college degree, and that includes Cal in most cases. It's a miracle every time a player stays to complete his degree.

Most big time college football programs are using their schools as a cover to run de-facto minor league football programs. In these cases, where many players don't even have a high school education, the schools should be required to pay their players.

So it's very simple, act like a school and require educational performance or act like a non-school and pay your players. The NCAA could establish standards to evaluate this very easily if they wanted to. But they are too busy counting their ESPN dollars to give a rat's ass about it.

And the APR and graduation rate standard is no standerd at all since the school's themselves vary widely and the work required to advance academically.


Agree 100%. We seem to still hang onto the "student-athlete" notion that our basketball and football players are coming to Cal for degrees. So if the scholarships are "payment," then let them succeed economically since it is why they are here! We keep holding up APRs and grad rates as some sort of measurement of "success" when in fact our players are really semi-pros. I would feel alot better about Cal football if we all came to grips with this academic illusion about our players. Student-athletes in these two sports are long gone.. they come here to be showcased for the pros.
concordtom
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59bear;842293502 said:

Lost in all the dust stirred up by various legal actions allegedly on behalf of "exploited" athletes is the real possibility that college athletics may well be history at a lot of schools. It's one thing to leverage a sweetening of the scholarship pot to more adequately fund the full cost of attendance. OTOH, a successful suit to have athletes declared employees (unionized or not) would likely lead many, perhaps most, schools to simply drop athletics. There is no question that huge sums of money are involved; that relatively little finds its way directly to the athletes; that coaches, administrators, NCAA execs and the media represent the 1% in this economic sub-set. But with so few schools actually turning a profit on athletic programs, where is the incentive to take on a huge obligation (workers' comp, benefits, etc.) represented by "employed" athletes?


1. Fair market forces should set player value.
2. Those players and sports should not be forced to subsidize other sports.
3. It would radically change all NCAA sports, but we should allow this to happen. I don't think all intercollegiate sports would disappear, and even if they did, it is not the responsibility of income earners to pay for non-earners.
4. The current situation causes a market distortion, which creates all sorts of problems.
5. While things would be different, I'm willing to see what that looks like and address solutions for the fallout than continue with the improper status quo. It's just wrong, like we are. Fooling ourselves. Change is hard, but we must accept it as a normal part of progress.
KevBear
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slider643;842293765 said:

I think you're mixing up your posters. I didn't say anything about a Cal or furd degree. I'm just saying the earnings NPV of a college graduate vs someone without a degree is substantial.


That's true, but it omits important factors:

1) In a world without football scholarships, many of the guys who play for a given university may have attended that university or a better one anyway.

2) In a world without football scholarships, many of the guys who are currently on a college football team would still have attended some university, even if it is not as good as the one they are currently in. Their projected earnings go down by variable amounts, but in many cases the delta will not be large.

3) Over 40% of FBS football players do not graduate within six years. Excepting the possibility that they might return to graduate after six years, or may have derived some other tangible benefit from having attended their school, the value derived from having been admitted, as well as the scholarship itself, is zero. In a world without football scholarships, the delta for these guys is zero.
KevBear
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59bear;842293502 said:

Lost in all the dust stirred up by various legal actions allegedly on behalf of "exploited" athletes is the real possibility that college athletics may well be history at a lot of schools. It's one thing to leverage a sweetening of the scholarship pot to more adequately fund the full cost of attendance. OTOH, a successful suit to have athletes declared employees (unionized or not) would likely lead many, perhaps most, schools to simply drop athletics. There is no question that huge sums of money are involved; that relatively little finds its way directly to the athletes; that coaches, administrators, NCAA execs and the media represent the 1% in this economic sub-set. But with so few schools actually turning a profit on athletic programs, where is the incentive to take on a huge obligation (workers' comp, benefits, etc.) represented by "employed" athletes?


College football players are being exploited. Let's not bullshit that with air quotes.

The value of a scholarship is a fraction of what NCAA players would receive under the kind of salary model the NFL and NBA employ. The belief that the overall margin is made up by the players having access to educational opportunities they wouldn't otherwise have is farcical.

I suspect that most people who do not support a model that treats players like professionals do so for reasons that are completely separate from a rational analysis of labor rights. It's that they simply don't like the idea of college players getting paid, the same way I don't like mushrooms, fancy sports shoes, or people who misuse the word "literally." It just turns them off.

They don't like it because 'this is the way it's always been.' Players have always been "amateur student-athletes" and the traditional reward of the student athlete system should be good enough for football players now, just as it was since time immemorial. "They're getting a free ride at Cal for playing a lousy game and they're not happy? Are you kidding me?"

They also don't like it because labor agitation is generally not popular in this country, and it gets a hell of a lot worse when professional sports are thrown into the mix. They already can't stand the "outrageous salaries" that professional athletes make, so a new group of athletes claiming they're being exploited by pointing to pros leagues is not going to generate any sympathy, even if the players' claims are rationally valid.

Finally, they don't like it because they feel threatened by it. College football is really beloved by a lot of people who can't imagine what the game will be like if college players become pros. It could have unforeseen repercussions that fundamentally alter the game. I won't deny that. Besides which, there's a kind of sacred association the alums make with players out of the sentiment that hey're all part of the same community, that they're family through the university that is jeopardized by turning them into pros. I get that, I really do.

Even though they're irrational, a large part of me sympathizes with the above sentiments. But "because I'd prefer it otherwise" is not a valid reason to deny someone a claim they're entitled to.
Darby
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KevBear;842293861 said:

College football players are being exploited. Let's not bullshit that with air quotes.

The value of a scholarship is a fraction of what NCAA players would receive under the kind of salary model the NFL and NBA employ. The belief that the overall margin is made up by the players having access to educational opportunities they wouldn't otherwise have is farcical.

I suspect that most people who do not support a model that treats players like professionals do so for reasons that are completely separate from a rational analysis of labor rights. It's that they simply don't like the idea of college players getting paid, the same way I don't like mushrooms, fancy sports shoes, or people who misuse the word "literally." It just turns them off.

They don't like it because 'this is the way it's always been.' Players have always been "amateur student-athletes" and the traditional reward of the student athlete system should be good enough for football players now, just as it was since time immemorial. "They're getting a free ride at Cal for playing a lousy game and they're not happy? Are you kidding me?"

They also don't like it because labor agitation is generally not popular in this country, and it gets a hell of a lot worse when professional sports are thrown into the mix. They already can't stand the "outrageous salaries" that professional athletes make, so a new group of athletes claiming they're being exploited by pointing to pros leagues is not going to generate any sympathy, even if the players' claims are rationally valid.

Finally, they don't like it because they feel threatened by it. College football is really beloved by a lot of people who can't imagine what the game will be like if college players become pros. It could have unforeseen repercussions that fundamentally alter the game. I won't deny that. Besides which, there's a kind of sacred association the alums make with players out of the sentiment that hey're all part of the same community, that they're family through the university that is jeopardized by turning them into pros. I get that, I really do.

Even though they're irrational, a large part of me sympathizes with the above sentiments. But "because I'd prefer it otherwise" is not a valid reason to deny someone a claim they're entitled to.


Cal does not have extra millions laying around to pay a salary to student athletes. Make no mistake, all athletes would have to be paid the same due to Title IX. That means every last field hockey athlete will be getting the same check as a Top 100 FB recruit. That is patently unfeasible.

It could be worse for athletes, actually. In the international soccer model the club "owns" the player under contract, decides which club they may play for and is due transfer compensation. How about the NFL pays a transfer fee to the NCAA schools for player development costs? That is just as absurd as paying players. The monetary value of NCAA football comes from the history of the game and school brands. The current players have little to do with that. If it was all about the athletes there would be billion dollar TV contracts in minor league baseball or basketball. That there are not tells you where the value in NCAA sports is generated.
FiatSlug
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GB54;842293694 said:

Except it's not taxed and it's not full time


Are you arguing that the value of the scholarship is greater than $12 per hour because it's not taxed and it's not a full-time job?
heartofthebear
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72CalBear;842293805 said:

Agree 100%. We seem to still hang onto the "student-athlete" notion that our basketball and football players are coming to Cal for degrees. So if the scholarships are "payment," then let them succeed economically since it is why they are here! We keep holding up APRs and grad rates as some sort of measurement of "success" when in fact our players are really semi-pros. I would feel alot better about Cal football if we all came to grips with this academic illusion about our players. Student-athletes in these two sports are long gone.. they come here to be showcased for the pros.


I wonder how many of our "student athletes" would come to Cal for an education if we weren't a member of the pac-12 super conference but instead were in the WAC or some other minor conference? If the education is the same either way it shouldn't matter. But, as you said, it is all about showcasing for the pros, not so much the education.
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