I agree that it's not the NCAA and nobody gets a full scholarship but there are programs in Canadian University Football that would, by any other name be a scholarship.
$1:
The CIS member institutions do not offer athletic scholarships; although, universities do provide partial athletic awards, as well as academic scholarships and needs-based grants for athletes who have to forgo part-time employment to participate. In a CIS study for the 2002-2003 academic year, across all sports, the average award per student athlete was $522.00 for men and $311.00 for women. The highest average was for male ice hockey players, getting $1,108.00 annually[2]
Increasingly, CIS schools are offering booster-support programs, where alumni, parents and/or corporations can donate money to a targeted fund especially designed to off-set a student-athlete's tuition and living costs. The University of Windsor has an Adopt-A-Lancer program,[3] for example. The CIS has no regulations regarding how much each school can provide to teams through private support. The Université Laval's Rouge et Or football team, winner of the last 4 of 8 Vanier Cups, is so successful fund raising, the team trains in Florida during the spring
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So I can see why alot of these supporters, alumni and corporations are pissed that their money is going to students who can't play football.
Waterloo football isn't likely to rebound from this self inflicted chastisement and I can't see anyone willingly donating money to support student atheletes if the University is this anal retentive about group punishments.
Hell, it likely won't matter anyway, they'll be lucky to recruit any football players or even student atheletes for the next 20 years because of this disaster.
I can't help but think this all could have been avoided if someone in authority had stepped up and honestly looked at the 18 year old 5'10" 180lb receiver who, suddenly showed up to camp weighing 220 pounds of pure muscle, looking more like Ben Johnson than the skinny 18 year old kid they actually drafted.