Tuesday, January 5, 2016

Real Collegieate Money: College Football Playoffs

As the College Football Playoffs come to an end this Saturday, fans all over the land will be forced to wait until August before we see college football again. While this time of the year is a bitter/sweet time for most fans, this is the absolute sweetest time for the NCAA. According to collegefootballplayoff.com, schools earn money during bowl season in different ways. Here are a couple of ways teams make money:

- Each conference is given a base amount.
-$300,000 if a team reaches a certain attendance in the bowl game.
-$300,000 for each team in a conference that reaches the attendance requirement.
- Notre Dame receives $2.58 million for receiving the attendance amount
- A conference receives $6 million for each team that represents them in the CFP semi-finals
- Particular conferences in NCAA Subdivision (D2, D3) also receives $2.34 million in aggregation alone.

The NCAA does a nice job of trying to distribute a particular amount of money to different conferences, especially the power conferences (top 5 conferences). With that being said, the power conferences alone brought in a total revenue of $2.8 billion dollars in 2014. With expenses being low since they don't have to play college players, the NCAA earned around $1.4 billion. With the college football playoff system in place, at least two more games will be played to determine the champion. In addition to the ticket sales, the NCAA will also benefit from television contracts. According to CNN.com, ESPN and the NCAA has come to an agreement in which ESPN is paying a total of $7.3 billion dollars for the first 12 years of the college football playoffs.

With this year's revenue totals yet to be determined, the college football playoff system will sure increase revenue for the NCAA. Between the college football playoffs and March Madness. So while many universities pride and joy sport is coming to an end, the NCAA's is just beginning.