Thursday, January 17, 2008

Flag on the Play

While doing some more reading on the economics of the bowl system, I happened across some information that contradicts my previous posts on the payoff for conferences with two BCS participants. I cross-checked the new information with a page on the NCAA website that I later found that spells out the bowl financials and confirmed the error.

The error relates to the amount that a conference receives for the second BCS participant. When this occurs, the conference receives $4.5M, not the full share. This also adjusts down the cumulative annual bowl payouts. However, this amount varies from year-to-year based on how often, or how many, mid-majors play in the BCS. This adjusts down the gross annual payout a bit, and takes it well below the NCAA Hoops take for 2005 when the total bowl payout was $190M.

So, in the example of the Big 12 from Reverend Johnson's Invocation, because they placed 2 teams in BCS games, the Big 12 gets $36.1M, not $53.1 M. Still, the difference is a healthy $11.6M more than the Hoops tourney Big 12 take.

An oddity. ND is guaranteed app. $1M per year from the BCS regardless of whether or not they appear and, if they participate, receive only $4.5M. Truly, a bird in the hand is worth two in the bush.

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