Bowl Payout System

[SMU_Alum11]

Not sure if there's a thread around but thought it would interesting to see how much each conference looks to get from the bowl setup. Open to criticism/comments on methodology as I'm sure there are certain complexities not being addressed. However here's what I see so far based on this website: http://www.collegefootballpoll.com/bowl-schedule/

In the link, I assumed "Payout" is to the conference the team represents and when it says Payout- $100k that's to each team.

Before Revenue Sharing Model of the playoff system (not factoring are representative):

SEC - $34.5m
Big12 $34.2m
ACC - $29.3m
PAC12 - $26.9m
Big10- $21.6m
AAC - $12.7m
MWC - $7.9m
CUSA - $6.7m
MAC - $5.4m
Boston - $ 4.2m
Sun - $3.4m

This all came out to around $188.9m which is close to the site's $181.8m. Why there's a difference, I'm not entirely sure. One other thing is while Frisco states it $100k. I believe this is just an estimate and given that the moved locations and it's in it's first year, there might be a higher payout (especially if we fill the stadium). Right?

With RS - this adds an aggregate $433.6m to the overall pile, which the adjusted conferences are:

SEC - $142.9m
Big10- $130.0m
ACC - $101.6m
PAC12 - $99.2m
Big12 $70.3m
AAC - $48.8m / 12 = $4.07m per team. Not too bad.
MWC - $7.9m
CUSA - $6.7m
MAC - $5.4m
Boston - $ 4.2m
Sun - $3.4m

I see these footnotes so they weren't factored as I wasn't entirely sure how to do it without messing it up. It seems from Point 2 - that G5 shares the revenue that UCF earns? If so, then what's the big deal about sending your team to the NY6 other than the G5 conference getting to flex it muscle. I think they should make it solely for the conference that makes it. If how I did it above is "close-enough", then we always need to send a team to the NY6 bowl as I imagine that will help all schools involved.

1) Each conference will receive $300,000 for each of its schools when the school's football team meets the NCAA's APR for participation in a post-season football game. Each independent institution will also receive the $300,000 when its football team meets that standard.

(2) Each of the 10 conferences will also receive a base amount. For conferences that have contracts for their champions to participate in the Orange, Rose or Sugar Bowl, the base combined with the full academic performance pool will be approximately $54 million for each conference. The five conferences that do not have contracts for their champions to participate in the Orange, Rose or Sugar Bowls will receive approximately $81.32 million in aggregate (full academic pool plus base), which the conferences will distribute as they choose. Notre Dame will receive a payment of $2.65 million if it meets the APR standard; the other three independents will share $928,503.

(3) A conference will receive $6 million for each team that is selected for the semifinal games. There will be no additional distribution to conferences whose teams qualify for the national championship game. A conference will receive $4 million for each team that plays in a non-playoff bowl under the arrangement (in 2017-18, the Cotton, Fiesta and Peach Bowls).

(4) Each conference whose team participates in a playoff semifinal, Cotton, Fiesta or Peach Bowl, or in the national championship game will receive $2.25 million to cover expenses for each game.

Additionally, certain conferences in the Football Championship Subdivision conferences will receive $2.53 million in aggregate.

[BUS]

Thanks but I don't really get it.
The 4 mill I like!

[Stallion]

In other words in years an AAC team is a representative in the ACCESS Bowl, the Bowl participant and SMU through the AAC will receive a significant distribution (although relatively modest to higher pay-outs to P5 conferences) but the other AAC bowls are basically a wash with expenses that meet or exceed revenues in many instances. In years that an AAC team is not in the ACCESS Bowl there is very little to distribute through the AAC via the NCAA or the Bowls

What needs to be done is to have Bowls bid on dates, times and conference affiliations (more like Basketball) because the Bowls are not really that financially lucrative. Most schools earn a lot more from your typical home game

[Mustangsabu]

The AAC team in Frisco gets $350k I believe.

[SMU_Alum11]

Stallion, did i accurately account for the access bowl. From the footnotes, it almost made it seem that it didn't matter whose team got in but that the G5 in general share the revenue. The numbers presented assumes that only the AAC makes the money.

Secondly, with regards to Frisco bowl, isn't the $100k just an estimate. Couldn't we receive a higher payout if say the whole stadium was sold out, more advertisers sign up for time slots around the bowl game?

Lastly, I'm sure you are exactly right with washing in terms of margin to the conference but it seems fairly high payouts for G5 and bowls (outside of Hawaii) are fairly easy travel:

$4.8m for Liberty
$2.7m for Military
$2.0m for Birmingham
$1.5m for Independence

I guess if you factor Hawaii bowl travel expenses as well as the ancillary expenses for the other bowl (busing, etc.) and then divide by 12 then yeah not much there. I wish there was some analysis that shows what the cost of bowls to conferences are as a % of revenue.

Hopefully the AAC can send a team every year. That would be awesome.

[SMU_Alum11]

The AAC team in Frisco gets $350k I believe.

Hopefully it has changed and updated maybe due to demand from us being so close. In the website on my first post, it says we are only getting a payout of $100k. I would imagine we would break-even at that rate despite being within 50 miles of the bowl.

[Stallion]

The AAC team in Frisco gets $350k I believe.

It doesn't go to the team though-it goes to the AAC who pays expenses and then its put in a big pot with other Bowl Distributions and if there is anything left it is distributed to the AAC teams by formula

[Stallion]

If every seat in the House was sold for $55 that would only raise about $880,000 from ticket sales. Of course, I'm sure there are corporate sponsorship and TV revenue but its almost impossible for this Bowl to work financially. Its a civic outreach-to showcase the Town of Frisco

Compare to Texas A&M opening season against WhatsaMatter U,

102,000 x we'll say $80 a tickets (its actually much higher) = 8.16 Million

[SMU_Alum11]

Makes sense. I would be curious if Frisco paid for the bowl to be re-located there via incentives. However, I'm curious what the operating costs for the bowl and the two teams would come out to.

[Mustangsabu]

If every seat in the House was sold for $55 that would only raise about $880,000 from ticket sales. Of course, I'm sure there are corporate sponsorship and TV revenue but its almost impossible for this Bowl to work financially. Its a civic outreach-to showcase the Town of Frisco

Yes, I should have clarified that the $350k is earned by the conference, not the team.

SMU needs to keep buying tickets, and come to the game thirsty. And there are lots of restaurants by the stadium to pre-game at.

[Stallion]

Note the Liberty Bowl is a great pay-out but notice an AAC team rarely plays in the Liberty Bowl because the AAC only has a Secondary Affiliation with Liberty Bowl. Same with Independence Bowl

[SMU_Alum11]

Good point. Hopefully if they perform well there and bring a decent fan base with them that we could negotiate as a primary conference tie-in to it. I know that's probably unrealistic, but still. Should be a nice payday relative to other years for the AAC.

[mustangxc]

The American really needs to try to get stronger affiliations with:
Texas Bowl
Liberty Bowl
Heart of Dallas Bowl

If we can maintain the Hawaii Bowl, BBVA Compass Bowl, Armed Forces Bowl, and Military Bowl while strengthening/adding ties to the former we would be in great shape.

[SMU_Alum11]

Agree with trying to get P5 affiliations, but that's going to take strong negotiating. Our hope is to take CUSA, MACs and MWC bowls that have P5 opponents. I doubt that would ever happen. We would probably have to negotiate the split as 70% to P5 and 30% to G5 or something to that effect. Personally, and you all know how I feel about it, but would love to drop Hawaii bowl for those other bowls. The logistics expense would finally be dropped off the AAC's P&L.

[mustangxc]

I like the Hawaii Bowl because it is a destination bowl, it is the only game on television, and the MWC provides a great G5 opponent. That said, I don't want SMU involved with that bowl game every season. Once every 5/6 seasons is good.