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Please read section B of this. They basically say "yeah you have a ton of evidence that Stalions, a man on our payroll, was breaking the rules. But you have no evidence Harbaugh was responsible."
But they also include the line "the Commissioner may hold accountable an institution that is responsible for the person who committed an offensive action".... that is them. That is the University of Michigan. So alright, by that reasoning, Michigan you're banned from postseason play in the conf championship game and have to vacate all previous victories for this season.
Like what do they think they're arguing here?