“I’m not hiding,” Sonny Vaccaro told a closed hearing at the Willard Hotel in Washington, D.C., in 2001. “We want to put our materials on the bodies of your athletes, and the best way to do that is buy your school. Or buy your coach.”Vaccaro’s audience, the members of the Knight Commission on Intercollegiate Athletics, bristled. These were eminent reformers—among them the president of the National Collegiate Athletic Association, two former heads of the U.S. Olympic Committee, and several university presidents and chancellors. The Knight Foundation, a nonprofit that takes an interest in college athletics as part of its concern with civic life, had tasked them with saving college sports from runaway commercialism as embodied by the likes of Vaccaro, who, since signing his pioneering shoe contract with Michael Jordan in 1984, had built sponsorship empires successively at Nike, Adidas, and Reebok. Not all the members could hide their scorn for the “sneaker pimp” of schoolyard hustle, who boasted of writing checks for millions to everybody in higher education.

“Why,” asked Bryce Jordan, the president emeritus of Penn State, “should a university be an advertising medium for your industry?”

Vaccaro did not blink. “They shouldn’t, sir,” he replied. “You sold your souls, and you’re going to continue selling them. You can be very moral and righteous in asking me that question, sir,” Vaccaro added with irrepressible good cheer, “but there’s not one of you in this room that’s going to turn down any of our money. You’re going to take it. I can only offer it.”

William Friday, a former president of North Carolina’s university system, still winces at the memory. “Boy, the silence that fell in that room,” he recalled recently. “I never will forget it.” Friday, who founded and co-chaired two of the three Knight Foundation sports initiatives over the past 20 years, called Vaccaro “the worst of all” the witnesses ever to come before the panel.

But what Vaccaro said in 2001 was true then, and it’s true now: corporations offer money so they can profit from the glory of college athletes, and the universities grab it. In 2010, despite the faltering economy, a single college athletic league, the football-crazed Southeastern Conference (SEC), became the first to crack the billion-dollar barrier in athletic receipts. The Big Ten pursued closely at $905 million. That money comes from a combination of ticket sales, concession sales, merchandise, licensing fees, and other sources—but the great bulk of it comes from television contracts. 

Educators are in thrall to their athletic departments because of these television riches and because they respect the political furies that can burst from a locker room. “There’s fear,” Friday told me when I visited him on the University of North Carolina campus in Chapel Hill last fall. As we spoke, two giant construction cranes towered nearby over the university’s Kenan Stadium, working on the latest $77 million renovation. (The University of Michigan spent almost four times that much to expand its Big House.) Friday insisted that for the networks, paying huge sums to universities was a bargain. “We do every little thing for them,” he said. “We furnish the theater, the actors, the lights, the music, and the audience for a drama measured neatly in time slots. They bring the camera and turn it on.” Friday, a weathered idealist at 91, laments the control universities have ceded in pursuit of this money. If television wants to broadcast football from here on a Thursday night, he said, “we shut down the university at 3 o’clock to accommodate the crowds.” He longed for a campus identity more centered in an academic mission.

The United States is the only country in the world that hosts big-time sports at institutions of higher learning. This should not, in and of itself, be controversial. College athletics are rooted in the classical ideal of Mens sana in corpore sano—a sound mind in a sound body—and who would argue with that? College sports are deeply inscribed in the culture of our nation. Half a million young men and women play competitive intercollegiate sports each year. Millions of spectators flock into football stadiums each Saturday in the fall, and tens of millions more watch on television. The March Madness basketball tournament each spring has become a major national event, with upwards of 80 million watching it on television and talking about the games around the office water cooler. ESPN has spawned ESPNU, a channel dedicated to college sports, and Fox Sports and other cable outlets are developing channels exclusively to cover sports from specific regions or divisions.

With so many people paying for tickets and watching on television, college sports has become Very Big Business. According to various reports, the football teams at Texas, Florida, Georgia, Michigan, and Penn State—to name just a few big-revenue football schools—each earn between $40 million and $80 million in profits a year, even after paying coaches multimillion-dollar salaries. When you combine so much money with such high, almost tribal, stakes—football boosters are famously rabid in their zeal to have their alma mater win—corruption is likely to follow.

Scandal after scandal has rocked college sports. In 2010, the NCAA sanctioned the University of Southern California after determining that star running back Reggie Bush and his family had received “improper benefits” while he played for the Trojans. (Among other charges, Bush and members of his family were alleged to have received free airfare and limousine rides, a car, and a rent-free home in San Diego, from sports agents who wanted Bush as a client.) The Bowl Championship Series stripped USC of its 2004 national title, and Bush returned the Heisman Trophy he had won in 2005. Last fall, as Auburn University football stormed its way to an undefeated season and a national championship, the team’s star quarterback, Cam Newton, was dogged by allegations that his father had used a recruiter to solicit up to $180,000 from Mississippi State in exchange for his son’s matriculation there after junior college in 2010. Jim Tressel, the highly successful head football coach of the Ohio State Buckeyes, resigned last spring after the NCAA alleged he had feigned ignorance of rules violations by players on his team. At least 28 players over the course of the previous nine seasons, according to Sports Illustrated, had traded autographs, jerseys, and other team memorabilia in exchange for tattoos or cash at a tattoo parlor in Columbus, in violation of NCAA rules. Late this summer, Yahoo Sports reported that the NCAA was investigating allegations that a University of Miami booster had given millions of dollars in illicit cash and services to more than 70 Hurricanes football players over eight years.