High Pay Rate for Football’s Losers

When the Owls entered Austin on August 30, the team didn’t have any hopes of beating the formidable Texas Longhorns.  The Longhorns is college football’s top rated team.

The Florida Atlantic Owls however expects a payment after they play.

Florida Atlantic got $900,000 for being the sacrificial lamb on the path of the Texan’s undefeated season.  Florida Atlantic can expect to receive the same amount next season.  

What Florida Atlantic got was a pittance compared to other pushovers in the conference.  The big payouts come from lucrative income sharing and from the Bowl Championship Series which provides the largest checks for the equity conferences.

Teams belonging to the champion’s conferences could secure large TV contracts and guaranteed payouts from the BCS.  The payment, which could reach up to $17 million, is divided between the participating institutions after deducting the expenses incurred by the schools.  TV revenues are also divided evenly among the teams.  The richest league in the country, The Southeastern Conference, redistributed last year almost $89.5 million among 12 participating schools.

The Story behind the Figures

The data on Football riches come from the Equity in Athletics report of the US Department of Education.  Universities filed revenues and expenses reports and submit them to the Department. Leagues also publish income reports.

Syracuse, despite its 2-win season performance got $14.8 million last year.  Likewise, Ole Miss, Southeastern Conference’s cellar dweller, cashed in $17 million.  The payout came after a one win performance and losing big time in the Big 10.

Notre Dame however topped them all in terms of profiting from a loss.  Because of Notre Dame’s TV contract with NBC and other equally lucrative independent deals, the team cashed in $21 million from each winning game.  The fighting pirates won only three games during last season.  That’s why school administrators are still cuddling Coach Charlie Weiss in their folds.  Weiss pillow-fighting style is more lucrative than anything Wall Street can offer.

Sharing of Profits from the BCS

The experience of Notre Dame however is exceptional.  The big equity conference provided for conference affiliates are guaranteed from the profits of the BCS.  Based on the data of Education Department, 53 teams come from this affiliate conference out the total 55.  

The University of Washington emphasizes this data.  The team won two of its game in the Pac-10 conference.  The conference leader, Southern Cal, competed in the Rose Bowl and was paid $17 million.  After USC deducted expenses, a $15 million profit was reported by USC which will be divided among Pac-10 conference teams.  Meanwhile, Washington sat out on the couch watching the games on TV but still earned $1.5 million.
These big figures do not include earnings and revenues from television and league games.