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Depth counts. The walk-on deal makes sense as there are no playing scholarships at the DIII level. Maybe he gets a schollie after Spring ball if another QB or two bolt after the Spring Game. My guess is he wants a paid education at this point and maybe also DI experience if he is interested in coaching down the road...
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I also was thinking you pick up another QB assuming someone will probably leave.
With 2 seasons of actually being a starting QB this makes him the most experienced backup QB on the roster. I'm not saying he's going to be the number 2# option, but it's good to have someone with experience.