The spot is determined by which team the referee is pulling for to win the game. As we have seen several times in College Football this year, spots that appeared to be obvious (where the ball was located at the time the player was down, with his elbow, knee, etc) were changed to provide or take away a first down or, in some cases, a touchdown.
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7 Yards behind the line of scrimmage directly behind the spot where the previous play ended (middle of field or on left/right hash mark)