Success in college sports is primarily about one thing: talent. Yes, coaching matters. But if you get the best talent every year, even if your coaching is terrible, you're still going to be an elite team.

It's why pro sports have salary caps, drafts equivalent to finish, etc.
Title IX- the large # of men's only athletes & scholarships forces schools to "make it up" elsewhere.

It's why women's track has 18 scholarships versus 12.6 for men. It's why schools tend to have women's soccer and not men.

Reduce football scholarship & roster alleviates this.
And from a financial standpoint, you cut 20 scholarships, you're saving 600k+ a year. Depending on what happens to college football, you could designate this to player revenue sharing models, etc.
Point being: Greater talent distribution= more teams have a chance at not only winning the championship but being in the hunt= more entertaining product.
Contrary to conventional wisdom, as a sport, you don't always want the 'best' team to win.

We need an element of surprise, an element of hope to keep a wide array of fans engaged. It's why half the teams in pro sports make the playoffs.
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