Auburn's Jacobs Explains How Bowl Payouts Work

Auburn Athletics Director Jay Jacobs has started doing something really cool. Periodically, he will send out emails to Auburn alumni and fans and talk about the state of the Tiger athletics department. The letters are always interesting and shed light on exactly how things are viewed by the Auburn administration.

I thought I would share with you his most letter. In it, he talks about how the bowl payouts work and what Auburn's cut is from the bowl season. It's a very interesting read. Enjoy...

Dear Auburn Family,

The Auburn Tigers made history on New Year's Day. They became the first Auburn football team to defeat Nebraska in our first-ever AT&T Cotton Bowl victory. This year's outstanding seniors also set a new school record with 41 wins over four years.

Of course they will also be remembered for never having lost to Alabama. A hard-fought victory against Nebraska was a fitting finish for this team, led by a memorable group of seniors who will leave a great legacy of success on and off the field.

Consider this when reflecting on this year and where we are as a football program: Auburn is 33-5 over the past three seasons. That is third best in the country behind the past two national champions, Texas and USC.

As many of you may have read, the payout for the AT&T Cotton Bowl Classic was $3 million per team. The payout system for bowl games can be confusing, however, so I will explain the process.

One might assume each school participating in the Cotton Bowl gets to keep the $3 million payout. Or they might also assume teams participating in BCS games pocket $17 million each.

Here is how it really works: Each school receives a direct payment, or a "participation fee", and the remainder of the payout goes to the conference, which then splits the money evenly among its member institutions.

The direct payments participating schools receive are split along four levels, depending on how much that bowl pays out. For bowls that pay less than $1.5 million per team, each school gets $840,000 off the top. The remainder goes to the conference.

For bowls with total payouts in the range of $1.5 million to $4 million, each school gets $1.04 million off the top. That is how much Auburn received as direct payment from the Cotton Bowl. The balance of the $3 million Cotton Bowl payout goes to the conference, which then splits the money up evenly among all 12 schools. The SEC itself also gets a cut equal to the amount each school receives.

For bowls with payouts exceeding $6 million (i.e. the BCS games), each participating school gets $1.74 million. The balance goes to the conference, which takes its share and then splits the money up evenly among the remaining conference teams.

Auburn, in other words, received $700,000 less than if we had competed in a BCS bowl. It is also important to note that bowl payouts do not provide a major surplus of money for the athletic department. Sending an entire team, staff, support personnel, band and cheerleaders is an expensive proposition.

One other noteworthy fact is the BCS now has in place a rule governing conferences that place two teams in BCS bowls, which the SEC did this season with Florida and LSU. The payout for a second BCS team from any conference drops from $17 million to $4.5 million. The same participation fee is taken off the top, and the remaining money is divided evenly among the 12 SEC schools and the conference.

The AT&T Cotton Bowl was a first-class experience for our team and our fans. The hospitality was phenomenal. The City of Dallas was a wonderful place to visit, and the Cotton Bowl officials did an outstanding job.

I am proud of Coach Tommy Tuberville, his coaching staff and our student-athletes. Finishing the season with an 11-2 record in the nation's toughest conference is quite an accomplishment.

I know you join me in thanking everyone involved for the many months of hard work it takes to complete such a successful season. From our student-athletes and support personnel to the coaching staff and the coaches' wives who make many sacrifices of their own, we are indebted to them for giving us another memorable season.

Extra points

• If you have not voted yet this week, please support Auburn in the Pontiac Game-Changing Performance of the Year Contest. Auburn's blocked punt against Florida is one of four finalists in the contest. The team with the winning play will receive a $100,000 general scholarship award, so we need your help. Visit www.pontiac.com/ncaa to cast your ballot. You can also vote by visiting our website at www.auburntigers.com.

• Come out and support Coach Nell Fortner's Tigers as they open SEC play this week. Our women's basketball team is now 13-3 heading into Thursday's home game against Ole Miss. Tip-off is set for 7 p.m., and tickets are only $1.

• The Auburn men open conference play Saturday, Jan. 6, at 5:30 p.m. against Vanderbilt. Let's all support Coach Jeff Lebo's team and make some noise as they open conference play.

Until next time, I wish you and your family a prosperous and healthy New Year.

War Eagle!

Jay Jacobs

Director of Athletics