A few things....
The selection committee, the same committee that selects and seeds the teams, also picks the sites and the hosts. I'm not a big conspiracy theorist when it comes to what teams are selected (that doesn't always mean I agree, but I don't think it's all that political). However, when it comes to this, I kinda am. I noticed that with the exception of South Carolina, Kentucky and NC State, none of the venues are on campus. There are cases such as Louisville, Creighton, Marquette, Georgetown, and a few others who will be hosting on their home floors, but Creighton's AD is now the chairman, Kentucky's AD is on the committee, and there are ACC representatives on the Committee as well. Those are also on par with NBA and NHL arenas. So, while it's not exclusively at NBA and NHL arenas, it's about 90 percent that.
There is no rule that prohibits Dayton from hosting games in the Rounds of 64/32 if they're hosting the First Four. In fact, they've done it before. I believe they've done it more than once. I personally don't think that had anything to do with it.
Last, and certainly not least, hosting sucks. It really does. Your own team can't play there, so there is a good chance that if your school is in the tournament you won't get to go with the team because you'll be stuck at home doing event management. You're basically the NCAA's butlers. And, in return for doing this, you get nothing. I wouldn't want to host. Some schools always bid on it. Others never do, and probably never will. My thinking is in line with the latter category.
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