I keep seeing the term "loophole" being used in this rule interpretation. I don't see where there is a "loophole".
1. Since it's a kickoff, the ball is live for any team recover and gain possession (much like a fumble, in my view).
2. Before the ball has established possession by a team, the ball is touched first by a player who has established himself as OOB, which makes the ball OOB, and the ball dead.
3. If a fumble is touched by a player OOB before any team gains possession, the ball is declared OOB and a dead ball (much like this scenario in the kickoff).
4. In the instance of a fumble which is declared OOB, the ball goes to the team which last had possession.
5. Since a kickoff never has an established possession, the ball is declared to be kicked OOB by the kicking team, thus given the penalty for kicking it OOB.
It seems pretty logical to me.
it's a loophole because it is the only play where it becomes a penalty that moves the ball to the 35. it is all logical except the kicking team did nothing wrong so why penalize them - loophole is probably not the best word to be used but the point is the same
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