Well I have the answer as to why this play was allowed.
This play is the play which caused the rule to be change a few years back to add the use of verbage as USC. This school is about 45 miles from me and plays 8-man which is why the field is shorter and narrower as well as there being fewer players out there. I have worked many games at it since then but it was not me working that game. I'm not even sure who the crew was. Before the game the coaches requested the officials look at this play and determine if it would be legal. They showed them the snap and explained what would happen. The officials determined that everything about it was legal to them. This was the second half kickoff and the crew knew that play was coming. They were only going to run it after a COP because of the "wrong ball" thing. The QB and the coach were on Letterman that next week because it was such an odd play. This got it enough national attention that the NF decided to make sure it would never be run again.
The snap was a continuous backward motion but it could easily be said that the ball didn't leave his hand immediately. And that year the use of verbage such as they did was not expressly prohibitted.
Today we know it is all illegal and now, as it is said, you know the rest of the story.
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