Why Alabama and Texas Will Earn More for College Football Playoff Appearance

Last Updated on December 30, 2023

Each participant in the College Football Playoff semifinals will earn $6 million for their conference. However, what happens from there differs greatly from one conference to the next, which will result in Texas and Alabama receiving more revenue than Michigan and Washington will for their appearances.

The Big 12 and SEC offer awards to the teams that participate before dividing the remaining revenue between all conference members in accordance with their conference revenue distribution plan, whereas the Big Ten and Pac-12 do not.

Under the current SEC bylaws, Alabama will receive $2.05 million for its appearance in the semifinals and an additional $2.15 million if the team makes it to the College Football Playoff National Championship. Alabama will also receive a travel allowance determined by the SEC Executive Committee.

The Big 12 structures its award a little differently. The participating team receives the higher of two formulas: Formula A awards a participation subsidy of $2,532,395 and a travel subsidy of $450/one-way mile. Formula B awards a participation subsidy of $2,138,467 and a travel subsidy of $900/one-way mile.

The Sugar Bowl is approximately 511 miles from the University of Texas campus, which makes Formula A the higher at $2,762,345. The Big 12 awards this for both the semifinal game and the national championship game, and I have confirmed Texas will still receive this despite their planned departure for the SEC.

If Alabama and Texas each advance to the national championship game, Alabama will be awarded $4.2 million and Texas approximately $5.52 million.

Although the Pac-12 doesn’t offer participation awards, it’s still undecided whether Washington will receive any conference revenue distribution this year due to their departure for the Big Ten. A judge initially ruled in favor of giving full control to Oregon State and Washington State as the only two remaining members of the Pac-12 beyond this season. However, last week Washington was able to get a temporary restraining order until the Washington state Supreme Court can hear the appeal.

For more information on College Football Playoff payouts for this year and previous years, check out our College Football Playoff Payouts page.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

No Comments Yet.