TerryD
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RE: How does the CFB Playoff money ($90 mil/yr) factor in....
(05-25-2013 08:08 AM)quo vadis Wrote: (05-24-2013 07:57 PM)TerryD Wrote: (05-24-2013 02:41 PM)quo vadis Wrote: (05-24-2013 02:30 PM)TerryD Wrote: (05-24-2013 02:11 PM)quo vadis Wrote: The B1G and SEC each get $27.5 million OB payout, but only when they place a team in the OB. The ACC gets $27.5 million when they face an SEC or B1G team, but the ACC gets $41.25 million if an ACC team faces Notre Dame. Notre Dame gets $13.75 million when it plays in the OB.
So the answer is "no", the SEC and B1G do not get any payout from the OB except in years when they have a team in the game. BUT, the contract also specifies that in the 8 years (of the 12-year playoff deal) that the OB is not hosting a playoff, SEC and B1G teams must play in the OB at least 3 times each, while Notre Dame can play a maximum of twice in the OB.
So the contract does guarantee that the SEC and B1G will get a minimum of $81.25 million in OB payouts ($27.5 x 3), or an average of over $10 million per year over the 8 years, and it is possible that either the SEC or B1G can play in the game 4 or even 5 times, meaning more money.
In contrast, Notre Dame is guaranteed nothing, since the contract does not require that ND ever appear in the OB. Notre Dame can play in the OB only if (a) it is higher-ranked than the highest-ranked available SEC and B1G teams, and (b) if it has not already appeared twice during that time.
And ND keeps it all, unlike conference teams.
Quo is correct. My bet is that we will see ND the maximum two times allowed, though.
As I've said, in the new system Notre Dame's guaranteed money has changed very little. Under the BCS, ND was guaranteed about $1.3 million no matter how the team did on the field. Under the playoff system, that rises to about $4 million. But after that, ND is strictly on a commission basis: Win big and earn spots in the playoffs and OB and Notre Dame will make a fortune, but if ND has Weis/Davie/Willingham-type seasons then it will make considerably less than the typical P5 team.
So, don't have those types of seasons, then. Issues solved.
Who really worries that much about being rewarded for failure? Don't fail.
ND used to make $17.5 million if it made a BCS game (and kept it all) and $0 if it did not.
ND loved that setup. Other schools are the ones that bitched and got it changed to $4.5 million if it made a BCS game and $1.3 million if it did not. (Other schools didn't like ND keeping it all while others had to share BCS bowl money with its "conference mates").
ND people disliked that newer deal. They liked the "win big and keep it all, don't win big and get nothing" philosophy of the old deal.
They looked upon the newer deal as a weak kneed Kevin White kowtowing to the other schools and being worried about being mediocre. They looked at the $1.3 million as "welfare payments". Besides, ND fans considered that $1.3 million as "chicken feed".
ND doesn't mind this new setup, at all. Only non-ND fans seem concerned with ND's lack of guaranteed "safety net" money for mediocrity/failure under the new playoff/access bowl setup.
This looks familiar to ND fans. Win big or go home. That is ok by them.
But it should NOT look familiar to ND fans, at least not in the sense of being similar to the original all-or-nothing BCS deal that you liked so much. This deal is far closer to the recent "$4.5 million if you make BCS, $1.3 million welfare payment if you don't" deal than it is to the original "make a BCS and keep the whole $17.5m, miss out and collect nothing" deal. Far closer, in that like the former deal, it gives Notre Dame a marginal safety net for mediocrity/failure while drastically reducing Notre Dame's payoff for success.
The new $4m guaranteed amount is essentially the same as the $1.3m amount, just pro-rated upward to account for the huge amount of new money the playoff system will pay compared to the BCS. And, like in recent years under the BCS, instead of getting the full BCS-level bowl share, ND gets a drastically reduced amount: $13.75m for the OB compared to the $41.25m the ACC will get, and if ND makes any other "access" bowl or the playoffs, ND gets a meager $6 million, not the huge payout given to the conference of its opponent.
Make no mistake, this new deal is just the recent, balls cut off $4.5m/$1.3m deal in new clothing.
Bottom line: Notre Dame has to win big, be good enough to be invited to the playoffs or other major bowls every other year, just to make the SAME money that a school like Kentucky will make for going 3-10 every year and never sniffing a major bowl. Yes, it is possible for ND to make considerably more than the typical P5 team, but to do so it will have to win at an insane level that it hasn't come close to reaching since the height of the Holtz era. Notre Dame could theoretically average close to $12 million per year, but only if it made the playoffs 10 out of 12 years and the Orange Bowl the other two years! If Notre Dame achieved the ultimate success, making the playoffs all 12 years, it would actually make less, since its playoff payment is less than its OB payment. In that case, ND would average $6m (playoff game payout)+ $5m ($4m welfare and $1m share of ACC other bowls) = $11m per year. Hardly a big reward for incredible success.
The best way to describe this playoff deal is "lose and make a ton less than the typical P5, win big and make just about the same" ...
The idea is to return to the Holtz, Devine, Parseghian eras, Quo.
Win big or don't *****. That is the whole deal about ND being an independent. That is the other side of it. Big deal.
ND wants to be independent. If that is the result, so be it.
Win big and collect the big check. Fail to do so, live with it.
Win at that highest level in the playoffs and the Orange Bowl (you left out the Fiesta Bowl) or don't complain.
Why are you so concerned about this? ND understood all of this when it made its decisions the past two years.
Do you think that this just snuck up on them?
(This post was last modified: 05-25-2013 08:29 AM by TerryD.)
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