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YES, the academic reputation matters. Government contracts to just the physics department typically pay 10x the athletics budget (haven't seen the actual numbers in a few years esp. since the Livermore Labs reorg). B1G REQUIRES academic cooperation so that money gets sloshed a little among all the members to share in research (obviously some goes out and some comes back from the other schools). I *think* the ACC has similar but weaker sharing. I don't know at all about the B12 but without Texas I'm not optimistic about their collective incoming grant money. Imagine if CAL has to start effectively subsidizing other schools' academic research in order to get their football team into a conference... The Academic Senate really will shut down all athletics if that happens.

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