Sen. Charles Grassley of Iowa, the ranking Republican on the Senate Finance Committee, told The Detroit News that he is investigating the tax implications of universities’ policies on premium ticket sales for athletic events, as part of his ongoing interest in tax breaks given to colleges and universities.

Fueling the salary race [for coaches] are favorable tax laws that permit donors to write off 80 percent of contributions to their favorite college athletic program -- such as the $165 million oilman Boone Pickens gave Oklahoma State in 2006.

Those laws, however, might not last forever. Sen. Chuck Grassley, the Iowa Republican who is the ranking member of the Senate Finance Committee, said in a statement sent by his office to The News on Tuesday that he is looking into donations tied to premium tickets as part of a review of higher-education tax breaks and why they aren't working to keep tuition affordable.

In testimony before Grassley's committee, Michigan president emeritus James Duderstadt said some of the tax benefits enjoyed by colleges have drifted far from the tax-exempt purpose of education, and are fueling "an arms race" in college sports.

He cited the "perverse treatment of intercollegiate athletics, in which mandatory fees for athletic events such as luxury skybox leases and licenses to purchase season tickets are treated, in part, as charitable contributions by the current tax code."