I don't consider NCs awarded before bowl games as dubious at all. That's how it was back then. The bowl was an exhibition. But I'm silly and believe teams play differently when it's for all the marbles vs just an exhibition.
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I've been assured I'm wrong many a time here.
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Now, losing your bowl back then didn't look good, but they had already accomplished their goal. The bowl was a reward, some fancy food, and pretty girls wearing bikinis in a warm climate.