A $1.3 Million Bargain
Sounds like a sweetheart deal until you realize what ND gave up and how it was forced into the deal by BCS conferences. Previously for ND, it was all or nothing. ND either got the full BCS payout, specific bowl revenue or nothing if it failed to make a bowl game.
In lean times ND didn't receive anything... but when it made the BCS it received a full BCS share. For that risk ND was compensated. The BCS Payout was $17 Million last year, but Notre Dame only received $4.5 million. That's because the Conferences distribute their revenues throughout their conferences and weren't happy with the proposition that ND could gain a big windfall. So the BCS conferences forced ND into a cap and, in exchange, guaranteed ND what would be a conference minimum.
This was not a deal ND faithful were happy about.
So when you read the headline: "Notre Dame gets $1.3 million for nothing," think again. ND receives $1.3 Million for giving up the shot at $17+Million which it would likely have received every 2 out of 3 years on average -- especially given the expanded BCS.
Over nine years here's how the deal would work out assuming a 2 out of 3 year BCS hit ratio and "lesser" bowl.
6 x 17 = $102 million
1 x 2 = $2 million
6 x 4.5 = $27 million
3 x 1.3 = $3.9 million
Even if you figure ND makes the BCS 1 out of 3 years... they're still leaving a ton on the table.
$1.3 million is a bargain.