When the Middleton College basketball team wins the championship, oilman Gregory Melton, Sr., the university's major benefactor, awards each of the players a gold basketball, but gives his son, Greg, Jr., one imbedded with pearls. Tired of getting special treatment because of his father's money, Greg begins to lose confidence in his athletic and leadership talents. Meanwhile, Freddie Fry, campus entrepreneur, schemes to start a crew team when his girl friend, Suzie Quinn, complains he doesn't have a varsity letter. Freddie asks Greg's girl friend Carol Parker, a reporter for the Daily M , to convince Greg to set an example by joining crew, and the team starts training. Coach Baxter appoints Freddie as cockswain, and he begins jogging with a young jockey. The Middleton boathouse is in shambles, and during their first match, their boat springs a leak and they lose. When Greg hears that Freddie schemed with Carol to get him on the team, he thinks they only want him for his money. Freddie proves him wrong when he uses student money to win a horse race at twenty-to-one odds and buys a new boat. Melton, Sr., meanwhile, gives Middleton a new basketball stadium to get the students' minds off crew. Freddie stages a bonfire and rally, which Greg refuses to attend, but Freddie then convinces Greg that Carol in innocent, and they are reconciled. Dean Wixby, acting on Melton's behalf, punishes Freddie for betting and forbids him to act as cockswain in the approaching big race. Hoping to force his way into the race, Freddie feeds his replacement, Egghead Jackson, four tamales, and because of his stomach ache, Jackson is unable to lead the men. Always thinking on his feet, Freddie jumps into the Daily M 's car and shouts commands to the team via the loudspeaker, leading them to victory. Melton gets so excited by the race, he renounces his objections to crew, and Freddie finally wins his varsity letter.