Sykotyk;730884 wrote:The difference in money between a playoff and the bowl system isn't the issue. Studies have already been documented that, OVERALL, a playoff would produce more money. The problem with a playoff is the money is more evenly distributed amongst all teams, including the 'have-nots'. In a playoff, if the ACC rep loses in the first round, that ends their cash-flow. If TCU won two games, the MWC suddenly gets a lot more money, etc.
In a bowl system, the BCS schools generally horde the money for themselves, win or lose. With ten BCS spots and six major BCS conferences, even if two slots go to non-BCS leagues, that still means the 'big dogs' are only fighting over which one gets the 18 million or so for the two remaining slots.
Guaranteed Money, even a lower amount, beats a chance at more money.
I believe it's the whole, "bird in hand is worth two in the bush" argument.
If I offered you a deal, $8 million guaranteed, or you could opt instead for a chance to win anywhere between $1 and $16 million, which would you take?
I think you’re pretty much spot on right now. A playoff would need to generate more revenue for everyone involved, not just for some. Since the six BCS conference get a bigger chunk of the pie right now, they would still need a bigger chunk in a playoff.
The BCS pays out $18 million for the six AQ conference champions and $4.5 million for each of the other four at-large spots. Basically each of the six AQ conferences gets $18 million and if they get a second team in the BCS they get an additional $4.5 million. Who if anyone makes a BCS bowl from a non-AQ conference really doesn’t matter, as the BCS gives a lump sum to all five non-AQ conference to divide however they want (though if any non-AQ schools participate in a BCS bowl that sum goes up). Last year the BCS paid these conferences nearly $25 million. They decided to distribute it by giving the MWC the biggest piece of the pie (because they qualified a school for a BCS bowl), the WAC got the second largest amount, and then CUSA, MAC, and Sun Belt split the rest. Also Notre Dame get’s $1.3 million and Army and Navy get $100,000 annually from the BCS and if they make a BCS bowl they get $4.5 million (this makes thing roughly equal to what they would get if Notre Dame were in an AQ conference and if Army and Navy were in non-AQ conferences).
Somehow a playoff would need to guarantee equivalent revenue for the six current AQ conferences whether any of their schools make the playoffs or not, give additional revenue for those conferences that do put teams in the playoff, give additional revenue for schools that advance in the playoffs, and greatly increase the amount that the non-AQ conferences are paid annual. A playoff may provide more money overall than the BCS does, but it wouldn’t be nearly enough to make everyone, even the non-AQ schools, happy.
Sykotyk;730884 wrote:{edit}
http://www.collegefootballcafeteria.com/bcs/mark-cuban-takes-another-step-toward-a-playoff/
Mark Cuban is offering $100 million a year to be divided by all teams just for a commitment to participate in a playoff if chosen, and if not chosen can still play in a bowl game (and still collect that appearance fee). Meanwhile, he will still pay participants for playing in the playoff, and he feels he can make back more than enough to cover the $100 million, plus all other money.
And considering that's more than all the money paid out by bowls combined, I'd say a playoff would make more money. But, the keyword is 'all', not just 'BCS'.
Sykotyk
First we need to acknowledge that your source on this is a blog and that Cuban hasn’t put forth any formal plan, just some very vague ideas.
Cuban said the idea would be to put $500 million in an account and pay out that money over five years which is where you got your $100 million a year number. This number is one that Cuban created out of thin air. He certainly isn’t going to commit that much of his own fortune to make a playoff happen. Right now he’s in the very early exploratory stages where he is gauging interests of possible investors to see how much money he could actually promise. He’s made no indication where this money would come from, or if it would be sustainable or growable over time. Also, there are 120 D-1A college football teams, so $100 million a year means that each school would get less than $1 million annually for making itself available for a playoff. That’s not a lot of money.
I also don’t know where the author of that article got his information that the BCS only paid out $48 million to the AQ conferences or that they paid out only $75 million total last year. The BCS bowl payouts alone total $126 million. Overall between paying the AQ conferences, the non-AQ conferences, the independents, and their annual payout of nearly $2 million to D-1AA football, the BCS paid out over $150 million last year. Mark Cuban would need to come up with far more than $100 million annually for a playoff.
Cuban has also indicated that he favors a 16 team playoff with all 11 conference champions automatically qualifying, and five other at-large teams being selected. As I’ve explained earlier, this can create logistical nightmares, up to 70,000 seat discrepancies between host schools, ticket sale issues, sponsorship problems, etc. An eight team playoff would be more feasible.
Cubans plan could potentially bring in more money overall, but unless he’s giving out $500 million a year, then it’s not going to be enough for anyone to agree to it. Right now, his plan is years away from becoming a viable option.