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Scheduling would be tremendously difficult, particularly from the standpoint of TV execs who like consistency or at least know what to expect in conference make-up...
Still, how do you sell recruits if they're possibly bouncing up and down divisions? How do you build conference loyalty or preserve rivalries? And how do you work out the budgeting?
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Others have suggested a propomtion/relegation period once every five or ten years... Should a school be denied 1-A if they can make everything else work but the record?
Others can't bear the thought of their school being relegated, fearing what that would do to support...
The only way I see scheduling working is by dividing the 12-team "A League" Conferences into two divisions with NO cross-divisional play. The games that would be opened up could be used for "Traditional Rivalries". That way, if a team (Vanderbilt) gets relegated to "B League", it can use the traditional games to maintain rivalries. Similarly, if a team (Boise State) gets bumped up, they can use the Traditional games for Idaho, Fresno State,...
Networks would have to commit to conferences and not teams. Scheduling probably couldn't be done more than one year in advance.
As far as recruiting and "fairness", do away with all scholarship rules other than the 1-A Maximum allowance. Schools sign as many or as few players as they care to sign. That way, a team like McNeese State can jump up to the B League from 1-AA without having to adjust scholarships.
Aa far as schools fearing relegation, they are all BCS teams that don't want a level playing field like this would be. A team like UNT or TCU could get its fair shot at The Big Boys while a team like Baylor plays against teams that are at its level.
I agree that this won't happen, but I love the idea.