My Grandpa and I got into a fight and he said the ticket money goes to the NCAA, and i said it goes to the Schools playing.

of course it goes to the schools. that's why you will always see a smaller school play at a bigger, better teams house. when north texas plays oklahoma in norman, they know they are going to get killed, but it's a nice payday. it's almost unheard of for a premo, top conference team to play a smaller school at the smaller schools house. a game in austin will draw 100K fans, no matter the opponent. so a bottom feeder is happy to get crushed in exchange for that huge payday.

NCAA....
who divides it between the teams playing and keeps some for itself

The high priced ticket money goes mainly to the high priced players.

It goes to the schools playing...Its for the football programs of the schools playing, but at football schools(top 20 every year), they spread what they get around to different sports that don't get as much money...

the money goes to the school athletic department.
Big football programs pay for all the other sports that dont make money