In a previous article (Evans, 2007) I explored some of the challenges HEFCE has recently presented to Oxford and Cambridge governance. These are far from over, with HEFCE insisting that Oxford answer eight "questions" later this year and Cambridge throwing down the gauntlet, with a ballot on the modest attempt to raise the number of external members on the Council from two to four (Cambridge, 2008). But Oxford and Cambridge are also unlike any other universities because of the special features of their "collegiate" structure, which is now creating unprecedented problems in striking a balance between the funding of teaching and research, in which teaching does not suffer.