Blogger Removed From NCAA Game for Blogging
CNet is reporting that a blogger from the Courier-Journal of Louisville, KY was recently ejected from an NCAA game for live-blogging. "According to the Courier-Journal, staff blogger Brian Bennett was approached by NCAA officials in the fifth inning of a game between the University of Lousville and Oklahoma State, told that blogging 'from an NCAA championship event "is against NCAA policies (and) we're revoking the (press) credential and need to ask you to leave the stadium."'"
Actually, the NCAA's right to control live/semi-live/recorded broadcast of its events, from public/state institutions or otherwise, has been tested and confirmed time and again in the courts. The fact that some NCAA institutions are quasi-governmental entities is incidental to this argument. If you extend your argument, then unrestricted video, audio, text, or any other kind of broadcast should also be allowed without licensing from the events.
If you want to kind of make the stretch argument that this is "taxpayer funded", well, any events that the NCAA would even care about kicking a "live blogger" with press credentials out of are going to be at programs that are already highly profitable for the institution, and thus not funded by taxpayer dollars.
I believe I have addressed your concerns here and a bit here.