FCS Selection Show

[KSBisonFan]

Can someone smarter than me tell me what exactly this means?

1. Prospective host institutions must submit the following minimum financial guarantees, which shall be 75percent of the estimated net receipts as submitted on the proposed budget:
First round—$30,000
Second round—$40,000
Quarterfinals—$50,000
Semifinals—$60,000
2. If the minimum financial guarantees are met, the committee will award the playoff sites to the top eight
seeded teams.

Does it mean you have to submit a bid that is 75% of game budget, meaning a 75% sellout crowd at NDSU produces a much higher bid than the minimums? Also, this doesn't seem to reflect that the higher seed automatically gets the game if other seeded teams bids higher.

I'm effing terrible with numbers (and computers/Iphones) btw and in case not obvious!!

"75% of net receipts" meaning ticket sales, parking, concessions?????? I'm probably dumber than CAS but not quite as dumb as Gabe so help me out here people.

[CAS4127]

You have to guarantee at least that dollar amount, whether through 75% of net receipts or out of pocket.

You're eligible to host as long as you meet the minimum bids for each round. If you're a seed and bid at least the minimum, you host a 2nd round game.

If you play another seed, the better seed hosts the game as long as the minimum is met.

EDIT: if I remember correctly, the amount that is paid is the greater of 75% of net receipts or the host institution's bid guarantee.

Ahhh, I see. They should just say it that way!!

Come on CAS you're a lawyer and you can't figure that out????

Does it help that I am very good at dividing by 3? As in 1/3 of $300K is $100K?

Also, it isn't as if, if you 'win' you only pay what you bid. The bid is a guarantee to the NCAA, if you take in more $$$ than that the NCAA continues to take their slice so the floor for an NDSU bid shouldn't be the minimum NCAA requirement it should be based on the NCAA's share of the minimum amount you think you're going to earn on the game.

Thanks, that refreshes my memory of reading about the total we have paid per game compared to minimum/actual bid submitted.

The good thing about this discussion this time is that it seems to have taken us much less time than in past years. Experience will result in that!!

[Bison Loaf]

"75% of net receipts" meaning ticket sales, parking, concessions?????? I'm probably dumber than CAS but not quite as dumb as Gabe so help me out here people.

It's always dicey attempting to decipher NCAA-speak but I would read it this way: Net receipts - Anything that NDSU would have left over to "put in the bank" after paying everyone else for services (FargoDome, or whoever else gets fees). Of THAT amount, then, hand over 75% to the NCAA and keep 25%. If that 75% to the NCAA isn't higher than the minimum listed above, you're screwed.

[Mayville Bison]

Can someone smarter than me tell me what exactly this means?

1. Prospective host institutions must submit the following minimum financial guarantees, which shall be 75
percent of the estimated net receipts as submitted on the proposed budget:
First round—$30,000
Second round—$40,000
Quarterfinals—$50,000
Semifinals—$60,000
2. If the minimum financial guarantees are met, the committee will award the playoff sites to the top eight
seeded teams.

Does it mean you have to submit a bid that is 75% of game budget, meaning a 75% sellout crowd at NDSU produces a much higher bid than the minimums? Also, this doesn't seem to reflect that the higher seed automatically gets the game if other seeded teams bids higher.

I'm effing terrible with numbers (and computers/Iphones) btw and in case not obvious!!

As Tony mentioned, bids have already been submitted even though teams don't know where they will be. Back in 2011, JMU (with an average attendance of 25k) had to go travel to EKU (average attendance of 7k) because JMU bid low and EKU bid high. 2010 is where GSU didn't submit a quarters bid and had to go to Wofford (both teams were unseeded).

Teams that are eventually seeded will put in their bids just in case they lose a couple at the end and end up playing in round 1. As long as they bid the minimum for each round as a seeded team, the highest seed playing will host their game. If two unseeded teams play in the quarters or semis, the bids they put in 2 months prior will determine who gets to host - meaning they don't know who they would play against so their bids better be decent if they want a chance of hosting later on.

I know you knew most of that and were asking about the confusing 75%/minimum garbage, but I thought I'd post it for those who aren't aware.

[Bisonator98]

Ahhh, I see. They should just say it that way!!



Does it help that I am very good at dividing by 3? As in 1/3 of $300K is $100K?



Thanks, that refreshes my memory of reading about the total we have paid per game compared to minimum/actual bid submitted.

The good thing about this discussion this time is that it seems to have taken us much less time than in past years. Experience will result in that!!

Well I figured if a lawyer couldn't figure it out how is anybody else supposed to.....

[Bison Loaf]

Also, it isn't as if, if you 'win' you only pay what you bid. The bid is a guarantee to the NCAA, if you take in more $$$ than that the NCAA continues to take their slice so the floor for an NDSU bid shouldn't be the minimum NCAA requirement it should be based on the NCAA's share of the minimum amount you think you're going to earn on the game.

1. Pretty sure that the 75% of estimated net receipts is just a general estimate used to establish the minimum guarantees. What the NCAA will take is a different deal altogether.

That is my understanding also.

Once the "estimated bid" at least meets the minimum listed criteria and the game is awarded to a host, the ultimate payout becomes 75% of the ACTUAL net receipts of the game itself that the NCAA will take, whatever that ends up being. If the 75% of ACTUAL net game receipts should end up NOT meeting the minimum submitted by the host for that game, for whatever reason, host will need to pay NCAA the minimum bid that the host actually put in for - not necessarily the 30, 40, 50 or 60K listed in the criteria, but almost certainly much more.

So, you still wouldn't want to overbid and somehow get stuck with a minimum that actual receipts would not support (say, for example, a huge "Buffalo-like" snow storm in Fargo - pardon the pun - that somehow drastically lowered ticket sales). But, for a school like NDSU, you'd definitely want to bid what you should realistically be able to do. In other words, for NDSU, no reason to "low-ball" and WIN the bid - NCAA's going to get 75% of the receipts anyway - all you can do by low-balling is lose hosting a game (and your own potential 25% for that home game).

That's my overall understanding, anyway. Yes?

[NDSUstudent]

It was interesting listening to former Montana AD Jim O'Day talk about the playoffs. He said after the NCAA took their cut and Montana paid their bills, they walked away with $30k per home game. He said a home game vs Montana State in regular season was a $1 million game.

He talked about when Montana went to the title game the Griz paid 1/3 of the total FCS playoff cost via their home games. Kind of crazy when you think about just how much the NCAA is taking. You can listen to all of his thoughts on the FCS wedge...His interview is towards the end of the show...http://www.blogtalkradio.com/ags-rad...edge--11152014

[CyPanth]

Why don't they just require a designated amount to host each round? It isn't like they do more/less if the net is more/less than 75%. Does the NCAA make lots of money from some games by going with the net 75% stipulation? In other words, does the NCAA rake in more money than the minimum from you because you guys pack the house and pay premium ticket prices (whereas they probably only get the minimum from UNI which probably won't pack the house and probably will have cheaper ticket prices)?

[CyPanth]

It was interesting listening to former Montana AD Jim O'Day talk about the playoffs. He said after the NCAA took their cut and Montana paid their bills, they walked away with $30k per home game. He said a home game vs Montana State in regular season was a $1 million game.

He talked about when Montana went to the title game the Griz paid 1/3 of the total FCS playoff bid via their home games. Kind of crazy when you think about just how much the NCAA is taking. You can listen to all of his thoughts on the FCS wedge...His interview is towards the end of the show...http://www.blogtalkradio.com/ags-rad...edge--11152014

This would seem to answer my question in the previous post. Nice job answering before I even asked. Pretty sharp for a "student"!

[Bison Loaf]

It was interesting listening to former Montana AD Jim O'Day talk about the playoffs. He said after the NCAA took their cut and Montana paid their bills, they walked away with $30k per home game. He said a home game vs Montana State in regular season was a $1 million game.

He talked about when Montana went to the title game the Griz paid 1/3 of the total FCS playoff bid via their home games. Kind of crazy when you think about just how much the NCAA is taking. You can listen to all of his thoughts on the FCS wedge...His interview is towards the end of the show...http://www.blogtalkradio.com/ags-rad...edge--11152014

Yeah, $30k seems a little low. He should know, though.

Didn't I hear once upon a time that NDSU was pocketing about $200k per playoff game, or is my memory failing me again?