“What people do know there is a lot of money [available] through athletics.”

I was going to make this the subject of an Envy and Jealousy post, but it’s so damned good on the merits that it deserves to be taken for what it says even more than how it’s written.

Start with this:

Apologists for the NCAA cartel tend to assume that they’re advocating for athletes being treated like other students. But this is completely untrue. What they’re defending is in fact a set of unique and extraordinary burdens being placed on athletes. Virtually no other students are banned from receiving compensation from voluntary third parties, and this is because it won’t make a lick of sense. Why on earth shouldn’t a music student be able to take a paying gig or a journalism student sell a story? Similarly, we don’t claim that scholarship students working as RAs or in the bookstore can’t be compensated, or that staff and faculty who get tuition vouchers for family members don’t need to be additionally compensated for their work. These rules aren’t about ensuring that athletes are “really” students or whatever; they’re about attempting to preserve competitive balance. And this isn’t a good reason to allow athletes to be exploited, even before we get to the fact that the NCAA doesn’t have anything remotely resembling competitive balance even with these rules.
[Emphasis added.]

If anything, the NCAA’s amateurism protocol exacerbates that.  The money that rolls in to the P5 schools is spent on coaches and facilities in a way that mid-major schools can’t match.  If the money flow were spent directly on student-athlete compensation, at least some mid-major programs might stand a better chance of attracting good athletes – no, they couldn’t match the depth of an SEC program, for instance, but they could offer a viable option for kids who might otherwise be facing a more marginal career at an SEC program.

And that’s why Dennis Dodd’s cheerleading for the schools’ pending burst of generosity (“The average oboe player on a music scholarship doesn’t have a $60,000 insurance premium available through the NCAA Student Assistance Fund. Jameis Winston did.”) misses the mark.  That oboe player isn’t prevented from getting paid by third parties.  Winston was.  And like it or not, what Winston could have gotten for himself in an open marketplace exceeds that $60,000 premium payment by a helluva lot.

Then there’s this rebuttal to Morgan Burke’s “What’s changed?” bullshit:

Finally, defenses of the NCAA tend to be rife with a rhetorical technique we’ve discussed recently: someone with an indefensible position changing the subject to an allegedly superior alternative that isn’t actually on offer. The obvious problem for NCAA apologists that Paul’s post raises is why athletes should be forbidden cash compensation — not only by universities but by third parties — because of the Noble Ideals of Amateurism and the Sanctity of the Groves of Academe while everybody else involved with the NCAA is allowed to fill up wheelbarrows full of cash and deposit them in university-provided cars and drive off to get a university-provided oil change. One answer is to say that all of the other NCAA-related profit-taking should be stopped. The obvious problem is that it’s not going to be, and in the meantime we have to treat athletes based on the system as it is. If coaches start getting paid like associate professors of English and the NCAA gives its games to networks for free while banning advertising and ticket prices are capped at $10, we can talk about whether scholarships are adequate compensation. (We still don’t need to talk about bans on third party compensation, because these are just terrible policy under any possible system of college athletics.) Until then, players should not be forbidden from getting any compensation they’re able to negotiate.

Of course, first they have to be allowed to negotiate, but put that aside.  The players are treated like amateurs, but they’re the only parties in the game that are.  And with each passing day, it’s harder and harder to see the justification for that.

Not that the schools won’t try.  As Burke himself can attest, letting the players have more of the revenue stream they help generate is something of a zero-sum game.  And schools would rather not slice that pie up any more than they have to.

*************************************************************************

UPDATE:  Andy Schwarz has a little more on the Purdue “expense” transfer.

53 Comments

Filed under The NCAA

53 responses to ““What people do know there is a lot of money [available] through athletics.”

  1. Doug

    This had been on my mind for a while and I’m glad someone put it into words better and more succinctly than I could. Champ Bailey and I both got full rides to UGA, but I had both the free time in my schedule to hold down some semblance of a paying job and the wherewithal to work wherever I wanted. Bailey and the rest of the guys on the football team effectively had neither, and all this posturing on the part of the NCAA and the schools about all the wonderful things they give to student-athletes is really just an attempt to compensate for that.

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    • Monday Night Frotteur

      Yeah, I mean if the administrators really wanted to improve “student-athlete welfare,” they could just let the ones who could get outside money get outside money.

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  2. Monday Night Frotteur

    Great post Senator and a great link. However, I am very dubious that the compensation cap was ever justified by it’s creators on “competitive balance” grounds. There are literally dozens of more effective ways to promote competitive balance (e.g. high spending floors) that have never even been discussed by the member schools, and from what I remember in Walter Byers or Zimbalist’s books, they never mentioned at the time competitive balance as a reason for creating or perpetuating the cap. Plus, as you and Scott Lemieux point out, college revenue sports are extremely imbalanced as it stands.

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  3. And how many boosters are going to grease an oboe player into signing with a school? How many oboe players are admitted despite falling well below academic standards for the rest of the student body? The oboe player comparison is far off the mark. The prohibition on compensation is about fear of corruption: no work or little work jobs. If you think that an bama football player can’t get a 1000% mark up on a signature that the buyer would just as soon ball up and throw away upon receipt … My point is that the “anti-status quo” aren’t any less prone to horse shit as your average big 10 AD. Fighting direct (school to player) payments to players is where the greed is demonstrated and that’s pretty unjustifiable under the current system. However one can see why they don’t want that Pandora”s box opened. How do you pay Gurley the same as some scrub? How do you tell boosters not to pay players if you are? I say burn it down and start over. Play with kids that are qualified to enter your school on academic merit.

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    • How do you pay Gurley the same as some scrub?

      Why do you pay Gurley the same as some scrub?

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      • You shouldn’t if market economics control but once you start that where does it end? Should bama have been able to offer Gurley 150k for 2013 and 2014? I’m open to hearing about the shangri la we’ll get when we compensate football players but the truth is that no one knows where that would end. I’m sure someone has that goldilocks “just right” amount of compensation for players but that’s very unlikely. Do we want a collective bargaining agreement for high school players? Strikes?

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        • The issue shouldn’t be what we get from player compensation. It’s what the players should get.

          But as for your concerns, let’s face it – there’s been plenty of ugly stuff marring college football for years now because of money. I don’t see why the players should be excluded from it anymore. But, then again, I’m not a college administrator.

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          • Derek

            I think our preferences do matter some. I don’t disagree that the players interests should be considered so long as college football is solely a “for profit” enterprise disconnected and unconcerned with the mission of the university. However, my preferences in order are:

            1) Ivy league Model
            2) NFL-lite
            3) current system.

            and #1 comes in far ahead of the other 2.

            What I don’t think people want to see is how going down the NFL-lite road will ultimately kill the whole damn thing. Its an unsustainable model. There are not enough teams to maintain competition and interest will wane as there will be a direct correlation between investment and results. There is a reason that the NFL is a cartel and not in any sense a free market model. Daniel Snyder and Jerry Jones would chase Pittsburgh into last place in a free market scheme and that the whole thing would die. The reason the NFL is survives and thrives is because everything that the owners do is tightly controlled so that resources (in terms of money) are basically irrelevant except that they all have some minimum amount of vast wealth. Minimum counts and maximum doesn’t. Bill Gates buying the 49s would do nothing simply because he has more money than all of the other owners combined.

            If this is the model, how many schools could maintain a place within it? You are setting up a death spiral. You are better off going back to where you started than over the cliff.

            Just because college football makes money doesn’t mean its designed to.

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            • Your number one is a pipe dream… unless you intend to start rooting for dear ol’ Cornell.

              And as for your “Just because college football makes money doesn’t mean its designed to.”, I’ll refer you back to what Lemieux wrote:

              If coaches start getting paid like associate professors of English and the NCAA gives its games to networks for free while banning advertising and ticket prices are capped at $10, we can talk about whether scholarships are adequate compensation. (We still don’t need to talk about bans on third party compensation, because these are just terrible policy under any possible system of college athletics.) Until then, players should not be forbidden from getting any compensation they’re able to negotiate.

              Get back to me about your dream as soon as this happens.

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    • Monday Night Frotteur

      The prohibition on compensation is about fear of corruption: no work or little work jobs.

      That doesn’t make sense. If that happened, so what? Or if there was no pretense and boosters just paid elite recruits/players, so what? That’s the question you have to answer to justify that rule. The answer some have proffered is “it would harm competitive balance.” But that seems pretextual given that college revenue sports are absurdly imbalanced as it stands. More likely the real answer is “a lot of that money currently goes to the administrators, and they don’t want to change that.

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      • AusDawg85

        If boosters funnel unlimited money to players, that is not coming from the administrators pocket. You have increased the size of the pie, not taken from the existing pool of TV money, etc.

        The NFL has to have a system to prevent unfettered bidding wars…salary caps and the draft.

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        • Monday Night Froetteur

          If boosters funnel unlimited money to players, that is not coming from the administrators pocket.

          I don’t agree. Boosters would be paying recruits/players for two primary reasons: 1) competitive advantage, and 2) access. Right now, to help a program competitively and to pay for access, boosters have to give the money to the administrators, who take a substantial cut and direct some of the $$ to cronies (e.g. affiliated construction firms).

          Caps on compensation are not nearly as effective to promote competitive balance as spending floors. Compensation caps are mostly about redistributing the market value of the players upward to administrators.

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          • Monday Night Froetteur

            ….and true third-party endorsement deals go through the administrators now too. For example:

            .http://cdn-jpg.si.com/sites/default/files/styles/si_article_main/public/2014/06/24/chase-garnham-day-12-story.jpg

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          • AusDawg85

            “…and boosters just paid elite recruits/players…”

            I was addressing this point only. If I give $100,000 to Gurley to play at UGA, no one else is getting a cut of that. In fact, I probably reduce my contributions to UGAAD since I’m fronting this expense. This may have been your point when you wrote, “More likely the real answer is “a lot of that money currently goes to the administrators, and they don’t want to change that.

            Sorry if I missed your point.

            P.S. Link went to a photo…I think you intended an article?

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            • Monday Night Froetteur

              If I give $100,000 to Gurley to play at UGA, no one else is getting a cut of that.

              Correct, but what you’re really paying for is to help UGA football competitively. Right now, if you want to spend money to help UGA football competitively in compliance with the member-schools’ rules, you have to go through the administrators (e.g. donating money to help build an indoor practice facility).

              I intentionally posted the photo. If “Ascend Federal Credit Union” wants to associate itself with a college football team, the only way it can do so without jeopardizing the eligibility of the player is to go through the administrators.

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        • Derek

          There are reasons that Cleveland Browns fans do not now, never have and never will hand players cash. There are reasons that college boosters have always wanted to. One answer for why there is this disconnect is a draft. Do you want to solve the inequities of college football by drafting Trent Thompson to the University of Michigan and then negotiate a salary? Is that really, where we want to go? Sure the kids will make out like bandits, but its pretty friggin’ disgusting if you ask me. Why should schools be doing this? If someone wants to start a minor league football program and do this and try to turn a profit, then good for them.

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          • In the absence of a league, how do you institute a draft?

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          • Monday Night Froetteur

            Sure the kids will make out like bandits, but its pretty friggin’ disgusting if you ask me.

            I don’t find that disgusting and I find people who do find it disgusting bizarre. A draft facilitates competitive balance better than compensation caps, but worse than spending floors.

            Why should schools be doing this?

            Schools/Universities are abstractions. People are the relevant actors, and the people here (administrators, boosters, third parties, etc.) do what they have done since the beginning of college sports 150ish years ago for various organic reasons. We don’t live in 1950s USSR, we don’t centrally plan and organize activities from prime directives.

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    • Doug

      If you think about it, this is another privilege non-athletes enjoy that athletes don’t. Business student John Wilfred Throckmortonshire IV can get a “job” at daddy’s hedge fund and sit around and play solitaire on his laptop all day with impunity, but a football player can’t. I’m not saying this form of “employment” is something anybody should be aspiring to, but still, why the double standard?

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    • Union Jack

      So they have a fear of corruption? Isn’t corruption via academic fraud and under the table payments from boosters and agents already present within the system?

      The problem with amateur system is that it is elitist. It was put in place to allow the elite, wealthy and overwhelmingly white Europeans compete in sport without having to mix with the poor, people of color or those from a lower class. It was adopted in the British school system. It was adopted by the Olympics and eventually took foothold here in collegiate athletics.

      But from the moment that amateurism was present in college football, schools have been cheating. They have used outright ringers, ineligible players, paid players, and committed academic fraud.

      Amateurism is since been abandoned by virtually every major athletic institution save for the NCAA. It is flawed foundation – the NCAA would be wise to abandon it.

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      • Derek

        I would suggest that the issue isn’t amateurism but rather the proper role of athletics within a university. Colleges offered football first. Somebody later decided to make it a pro sport. The pros decide who is and who isn’t eligible for the league and decided to use the colleges to train and baby sit its future stars. Colleges have, in the name of money and shiny trophies, been willing to go along. They should stop. They should force the baseball model onto the pro leagues. One big reason that there are minor league baseball teams is because it was a pro sport BEFORE it was a college sport.

        Once athletes are students first and they are shown to be profitable, then pushing for food, housing, stipends etc…. benefits for them that students who aren’t making the school money don’t get would be more than appropriate.

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        • Colleges have, in the name of money and shiny trophies, been willing to go along. They should stop. They should force the baseball model onto the pro leagues.

          And how would they go about doing that?

          Not being snarky here – I think the whole freshman ineligibility gambit is a feeble attempt to force the NBA’s hand. It’s not going to work, but I don’t doubt for a minute the schools would like to find something that would.

          BTW, the first college baseball game was played in 1859. The reason the minor leagues exist today is because there was a long tradition of independent minor leagues that lasted well into the fourth decade of the 20th century.

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          • It wasn’t a sport at uga until well after there was pro baasball. Pro baseball aspirants have never been forced to go to college and thus its a much better system. How does it happen? Make the stupid stars go to juco. Don’t admit dumb. Admit students on academics. The leagues will spend the money on a developmental model if you force their hand. Then kids will have a choice and we can move on.

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            • If the “stupid stars” go to JUCO, why would the pros need a developmental league?

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              • Derek

                “Need” may not be the issue. The issue is creating the environment in which it makes sense. If someone thinks that too much talent is being lost and/or that they could make a buck off of these kids, they will fill that void. The colleges make it very easy not to invest in a developmental league. We need to make it very hard for the NFL not to invest in a developmental league.

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                • The only way that’s gonna happen is if the conditions exist that these kids won’t get any training for three years after high school. That means no JUCO, either.

                  And why should it be the schools’ mission to make it hard for the NFL? What does that have to do with academics?

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                • Derek

                  I framed it in terms of effect. I wasn’t trying to suggest that the colleges should have as a goal a dev. league. They should create conditions from which a dev. league could/should/may follow so that the pros can go one way and the college students another, just like baseball, and tennis, and golf and gymnastics and track and every other sport save football and basketball.

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        • But the corruption college football almost started immediately after the creation of college football. If amateurism is so great, why has it been abandoned by the top levels of sport across the board?

          I find it truly interesting that so many people want to go back to even stricter form of amateurism. A form that is even more unfair to those from lower socio-economic classes. No one else is doing in sports around the world but the NCAA should?

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    • I see nothing wrong with paying student-athletes as long as there is full disclosure about who is making the payments, compliance with the IRS rules and regulations, and everyone pays the taxes owed. Allow the full cost of attendance scholarship, the ability to trade on name and likeness, and the ability to work at a job as long as those outside commitments don’t impact the student-athlete’s academic or athletic commitments. No university-owned trademarks can appear in said outside pursuits (autograph sessions, commercials, etc.). Slim down the compliance rule book and make the penalties for non-compliance harsh for the school, the coach(es) involved, the supporter/enabler, and the student-athlete.

      Take away the fig leaf of tax-exempt status for college athletic associations and make the student-athletes employees. The value of the scholarship, any negotiated compensation, and any outside income become taxable to the student-athlete. This arrangement is the same for the Heisman Trophy candidate, the young woman on the equestrian team, and everyone in between.

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  4. ASEF

    Competitive Balance + Cost Containment or Competitive Balance through Cost Containment. Same thing in terms of results, but different in terms of characterizing motivation,

    The NCAA for a long time has been “everyone has to play by financial rules that keep the San Jose States and Florida Gulf Coasts in the game.” From the NCAA’s perspective, moving to a model that accepts some schools and conferences can out-benefit (out-bid) smaller schools for the services of players is a game-changing acknowledgement. From the perspective of advocates and lawyers, it’s just a new fig leaf.

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    • From the NCAA’s perspective, moving to a model that accepts some schools and conferences can out-benefit (out-bid) smaller schools for the services of players is a game-changing acknowledgement.

      Two points in rebuttal:

      1. Big schools are out-bidding smaller schools now. They’re just doing it with facilities and coaching staffs.
      2. Letting players get paid for their likenesses doesn’t cost the schools one penny, at least directly.

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      • Mg4life0331

        Won’t certain schools have better and larger marketing abilities to reach rural areas like say Montana?

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      • ASEF

        You know, it took the Catholic Church a long time to admit Galileo was right. I am not saying their ability as an organization to admit a reality that others have seen clearly for awhile now justifies anything on their part.

        Why do people always assume that anything posted on the web that explains something also amounts to a defense of something?

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        • I wasn’t assuming anything. I merely offered a rebuttal to your explanation of where the NCAA stands.

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          • ASEF

            I guess I put too much emphasis on “rebuttal.”

            Delaney has been the chief advocate / antagonist on the “equal playing field era is dead” front. As for the marketing, it doesn’t cost the universities anything, but it does further tip the playing field. Maybe even more so than cost of attendance loopholes.

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  5. Whenever a Cartel organized by University Presidents says it’s not about the money but rather about the amateur status of student athletes – it’s a lie; it’s about the money.

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    • Lrgk9, pretty much anytime someone says it’s not about the money, it’s about the money. University presidents just think they can say because they’re smarter than everybody else. 🙂

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  6. FarmerDawg

    You can get free room and board, and in most cases a college education while in prison. You also can get paid a small sum for being on a work crew. I’m not advocating prison, but it looks like a correlation to me.

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    • This analogy is about as relevant as the one that tries to make college sports akin to the plantation and slavery.

      I want student-athletes to receive a full cost of attendance scholarship and the ability to trade on name and likeness and am leaning toward some form of pay for play with a total compensation cap of some kind to maintain some form of competitive balance. These comparisons even as hyperbole don’t advance the cause for allowing these guys to profit from their abilities.

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      • Joe Schmoe

        I think what the poster was getting at is that student-athletes have less rights than prisoners. It wasn’t an analogy but rather a comparison.

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        • That’s funny right there. The 2,286,800 people currently in U.S. federal and state prisons would probably differ loudly with this comparison that they have more freedom than the student-athletes who receive full scholarships to attend college and play sports.

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        • FarmerDawg

          You seem to have gotten the gist of the point I was trying to make. In an attempt to regulate the NCAA has striped athletes of almost all their rights and this extends over to Olympic sports also. The Olympic model has changed the NCAA has not.

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      • Dog in Fla

        Speaking of plantation life, man has dominion over all the vegetables at least according to Patty

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  7. Cousin Eddie

    The “extra benefits” statement that the NCAA rolls out is one sided. An average student can have the extra benefit of a job but a student-athlete is banned from the same “extra benefit” because it is an extra benefit? Is that the stance they are taking?.

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    • FarmerDawg

      You must assume the 20 hour rule is being followed. If you are competing in any sport at a high level you are practicing around 40 hours a week.

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  8. Slaw Dawg

    If universities made millions of $$ off oboe players, had exclusive rights to broadcast their performances, arranged for symphony orchestras not to hire them for 3 years, and told them they can’t work anywhere else or sell their songs or performances or autographed CDs to anyone, there’d be one helluva uproar, even if they also cut them a little slack on non-musical related academic standards. Good grief, can you imagine what would happen if all budding pop musicians were told by the recording companies “sorry, can’t buy your stuff for the next 3 years, but you can go to a college and give them exclusive rights to sell your tunes.” And what about these nervy young actors who go straight to the big screen while still in high school? “Nope, sorry, you’re ineligible for an actual salary, but you can get high school credit for being in our production.”

    I know there’s at least half a dozen reasons that football is different, but the plain fact is that it’s mostly different because of the vested interests that fans, high schools, colleges and professional sports (especially the NFL) have in the current system, which frankly and even proudly exploits naive young athletes while coaches, administrators and TV execs get richer and richer.

    What makes it even crueler is that the odds of the oboe player suffering some sort of freak accident that’ll end his/her career prematurely is quantum degrees smaller than the risk that’ll happen to a football player.

    I’m starting to feel like the guilty beneficiary of an indefensible system! I’m really gonna have to give up frequenting this website.

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    • Joe Schmoe

      You forget that the danger goes beyond career ending. The injuries are often crippling beyond the individuals ability to participate in the sport and are occasionally leathal.

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  9. timphd

    Does Dennis Dodd ever hit the mark?

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