That might not be so unusual, or illegal.
Where I work, University of Tennessee-Martin, all athletes--not just footbalk--receive 2 PE credits of for athletic participation each fall and spring semester. And, those credits are graded, and they're always A. Again, this is for every sport, every semester. It's my understanding this is a common practice.
I don't begrudge the credits so much as I think they should be assigned Pass/Fail and not included in GPA. It really bothers me that our athletics dept. brags about athletes having a higher GPA than the rest of the student body knowing full well that they inflate those grades.