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So are you telling me that one school cannot have a better musical program or computer science program over another school? And a parent would not consider that when trying to get their kid into a better college?
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A band director might be thrilled a quality trumpet or oboe player is moving into his district and will now attend his school. But he isn't going to be out there finding people that will pay for an apartment or pay for moving costs to get that kid to that district. Part of the rule is to keep parents from athletics over anything else but the other part is to prevent shady deals.
I know this happens everywhere and each state or other jurisdiction has their own rules to deal with it. And while I'm as big a proponent of school athletics as anyone who ever lived, if you find the rare case of a family moving a HS kid so he can be on a better debate squad, most (including me) would agree that that is a little more of a co-curricular activity than sports. In addition, the UIL (in Texas, obviously) doesn't have jurisdiction over all activities. Even those they do have, like debate, are ignored since being disqualified from the UIL tournament means nothing to debate students who compete under totally different organizations. Sort of like select athletic teams, but that's getting into a whole other can of worms.