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Why a college football playoff means the end of the Rose Parade... and important community ties

Robert Niles
Published: January 6, 2010 at 1:15 PM (MST)
Tomorrow's BCS championship surely will bring with it calls from some newspaper columnists and TV and radio hosts for a college football playoff. Some of them might point to polls that report public support for the idea of doing away with the traditional bowl system in favor of a playoff.

But abolishing the bowls does away with much more than a few football games, which would be replaced by playoff contests, anyway. How many people would support a college football playoff if it meant, for example, no longer having a Rose Parade on New Year's Day?

Because that's exactly what a playoff system would do. It would endanger the survival of the Rose Parade, as well as a long list of other community traditions that collectively, mean hundreds of millions of dollars of economic impact to the communities which host them. Sure, a football playoff might mean a larger payday for participating universities and their conferences. But only at a larger cost to the communities that have supported and hosted them for generations.

I took a look at the most recent available IRS Form 990 for the Tournament of Roses [1.9 MB PDF file], the Pasadena, California non-profit which stages both the Rose Bowl and Rose Parade. In 2008, the Tournament of Roses reported gross receipts of $50,627,639. Sounds like a healthy organization all around, right?

That's just the point, the Tournament of Roses is financially healthy as an organization that puts on a football game and a parade (as well as funding some local charities and causes). Take away the football game, though, and the balance sheet changes.

The 2008 Rose Bowl Game earned $43,093,624 in revenue, against $38,504,060 in expenses, according to the Tournament of Roses' Form 990. But the Rose Parade earned just $4,536,587 in revenue against expenses of $7,650,560.

That means that the Rose Parade runs $3.1 million in the red. Only a $4.6 million profit from the Rose Bowl Game allows the Tournament of Roses to stay in the black, overall.

Take away that bowl game, and I can't envision a scenario that allows the Rose Parade to continue. Think that the community will fund it? Think again. The Pasadena schools have been facing a $20 million deficit, thanks to cuts in state funding. There's no way that the City of Pasadena is going to hand over $3 million-plus to the Rose Parade in that environment. (Traditionally, the Tournament of Roses pays Pasadena to cover expenses in hosting the parade.)

Television ratings for the Rose Parade have been declining in recent years, as the Tournament of Roses has weakened its traditional ties with the Big Ten and Pacific 10 conferences, whose champions met in the Rose Bowl Game for decades. With the Big Ten and Pac-10 joining the BCS, its champions have been called away to the BCS title game in some years, sending representatives from other conferences to Pasadena.

Parades hosted by other bowl committees have suffered far worse. The King Orange Jamboree Parade, once held on New Year's Eve, preceding the next day's Orange Bowl, died in 2002 after losing its TV contract in 1997. Perhaps not coincidentally, the Bowl Alliance (the predecessor to the BCS) did away with conference tie-ins to the Orange and Sugar Bowls between 1995-97, severing the connection between the Plains and Midwest states covered by the old Big 8 conference to the Orange Bowl and its parade. When the BCS restored conference tie-ins, the Orange Bowl became affiliated with the Big East Conference, and later, the Atlantic Coast Conference. But by then the community damage was done.

So what if Miami, or the Los Angeles area, loses a parade? A UCLA study of Tournament of Roses events in 2005 attributed $208 million in direct expenditures and $370.3 million in total economic impact to Southern California from the parade, game and associated events.

Though I was born in Los Angeles, I grew up in Indianapolis, and let me tell you, the Rose Bowl and Rose Parade were important events to people in the Midwestern Big Ten states when I was growing up. Just as the Orange Bowl was to people in the old Big 8 states and the Sugar Bowl was to people in the states covered by the Southeastern Conference. Having those bowl tie-ins in place builds marketing momentum for these destinations, year after year.

That momentum won't continue under a playoff system, unless conference champions are sent to the same destination year after year. Even then, fans are more likely to spend the money to travel to a season-ending bowl game, instead of an early-round playoff game that might lead to a future game at another destination.

If college football champs want a true national champion, there is a better system. Simply create a game where the top two teams, ranked by the sports' coaches at the end of the season, so there is accountability to those within the sport, play for the title.

Sound familiar? With a little tweaking, that's essentially the system that the BCS now provides.

Here's how the BCS could provide a national college football champion while preserving and refreshing the conference tie-ins that cultivate strong economic impacts to hosting communities. The key is to ensure that each conference sends a representative to the same bowl each year, to build a relationship between a bowl host and the people and fans of a conference's geographic region.

To build political support for an improved BCS, the champions of the Mountain West and Western Athletic Conferences should be included, along with the champions of the Big Ten, Pac-10, Big 12 (the successor to the Big 8), ACC, SEC and Big East conferences, which are included now. That would require adding a sixth bowl game to the BCS mix - I'd suggest the Cotton Bowl, one of the traditional big four "commodity" bowls, along with the BCS's Rose, Sugar and Orange Bowls. (The Fiesta Bowl and the BCS championship game are the other current BCS contests.) Play the game at 1 pm Eastern on New Year's Day to avoid broadcast conflicts with other BCS games.

I suspect that much of the current support for a playoff is actually frustration over leaving Mountain West and WAC schools out of automatically qualifying for the BCS. I say, let 'em in; add a game; problem solved.

To reduce controversy over the selection of teams to the BCS, I'd simplify the complicated formula that nows governs the selection of the top two teams in favor of simply taking the top two teams from the season-ending coaches' poll. That'd be easier for fans to understand, and place responsibility for the sports' championship in the hands of its coaches, instead of outsiders' computers and selected media and celebrities, as now play roles in the process.

Finally, to cement community ties to the games, I'd assign each conference champion to a specific game. Currently, the Big Ten and Pac-10 champs play in the Rose Bowl, the Big 12 champ in the Fiesta, the SEC champion in the Sugar and the ACC champ in the Orange. The Mountain West, WAC and Big East champs would need homes among the Cotton, Fiesta, Sugar and Orange bowls, and that should have to be left to conference and bowl leaders to sort out.

But when a conference champion is selected to play in the BCS championship game, the second place team in that conference should be selected to go to its conference partner bowl in the champion's place. That assures that a representative from the partner conference will play in each bowl each year.

This system, call it BCS 2.0, provides it all - participation for teams from every major conference, a true national championship game, and enduring regional ties to bowl games that fuel lucrative economic impact for hosting communities.

Forget about a playoff, it's a system-wrecking pseudo-solution that colleges, fans and bowl hosting communities cannot afford.

Update: Take a look at this report from Forbes, which lists the Rose Bowl as the fifth most-valuable brand in sports, one spot ahead of the NCAA basketball tournament. (The top four are the Super Bowl, the Summer Olympics, the Soccer World Cup and the Daytona 500.)

Remember, this is the economic impact of the Rose Bowl alone, not including the impact of Orange, Sugar, Fiesta and BCS Bowls. Given that the NCAA basketball tournament, which involves far many more teams, fans and sites than any football playoff could, can't beat the economic impact of the Tournament of Roses, it seems economic folly to me to consider gutting the Rose Bowl in favor of a playoff.

So let's be honest, if college football fans want a playoff, it would come at a multi-million-dollar price. There would be no overall economic benefit, only a loss. Given where that loss would be concentrated, it seems to me that California's Congressional delegation should be leading the charge to fight attempts to legislate a college football playoff.

Robert Niles also can be found at http://www.themeparkinsider.com

From a reader at 72.44.97.173 on January 6, 2010 at 4:38 PM

How can you say the Rose Bowl has weekened ties with the Big 10 and Pac 10? The last time a big10/pac10 team didn't participate in the Rose Bowl was 2002. The last time both conferences weren't represented was 2006. In the last 20 years, only 5 teams out of 40 were from a conference other than the pac 10 or big 10.

There is absolutely no reason that a playoff system can't exist along with the bowls. The 5 BCS bowls can exist as a national championship and runner up bowls without a problem. As every other sport has shown, people travel to playoff games.

From Robert Niles on January 6, 2010 at 4:49 PM

2002 - Miami vs. Nebraska
2003 - Oklahoma vs. Washington St.
2005 - Texas vs Michigan
2006 - Texas vs. USC

That's four years in a five-year period without a Big Ten vs. Pac-10 match-up, plenty of time to weaken the bond between Big Ten/Pac-10 fans and the Rose Bowl. Fortunately, it hasn't been enough to sever that bond, and four subsequent Big Ten/Pac-10 matches have helped. Under the current system, though, a Big Ten/Pac-10 match is not guaranteed, continuing the weakened bond. Under the system I propose, it would be guaranteed, restoring the strong bond.

The big reason why bowls can't co-exist with a playoff is people's financial inability to make two days-long trips in less than one month's time. Bowls attract large, lucrative crowds because they are vacation destinations, in addition to game sites. In a playoff, the bows' importance would be lessened, and people would travel for the game only, if that.

Furthermore, if the Rose Bowl is no longer the final game of the season featuring top teams from the Big Ten and Pac-10, then it won't command the fee it currently gets from TV, reducing its ability to subsidize the Rose Parade. Throw in fewer visitors from out of town, and LA loses its multi-million economic impact and the parade dies.

From a reader at 76.166.146.84 on January 6, 2010 at 8:28 PM

Many playoff proposals in the mix lately include hosting playoff games at major bowl sites; obviously Pasadena would be one of them. So there'd still be a game at the Rose Bowl. And there'd still be a parade. There was a parade for decades prior to the game's existence, and the parade's audience, in-person and on television, is often vastly different than that of the Rose Bowl Game. I've never even heard of The King Orange Jamboree Parade. I've known what the Rose Parade is since I was in elementary school - it's a nationally-recognized institution. Though both run by the Tournament of Roses, aside from the participating schools' marching bands, the game and parade are completely separate events that are not dependent on the other for existence. Case in point: years past when the Rose Bowl has hosted the BCS title game (before the +1 format we have now), including 2006 - the parade went as planned on Jan 1. (2nd that year, actually. and in the rain.), and the game was days later. People watched the parade then, they will watch the parade in the future.

From Robert Niles on January 6, 2010 at 8:48 PM

Except... I've already made a case that a lower-round playoff game at the Rose Bowl will not gross the same amount of cash to the Tournament as the Rose Bowl Game does, and that without a multi-million-dollar infusion of cash, the parade will not go on, and TV ratings for the parade have declined as the game has weakened its ties to the Big Ten and Pac-10 conferences.

And, oh yeah, there's no guarantee that a playoff would include the Rose Bowl or that it would play on Jan. 1.

Other than that, yeah, gutting the Rose Bowl Game for a playoff won't have any affect on the parade or the Tournament's economic impact on the region. :-)

Now, I'll concede that the parade will have to do more than strengthen its ties to the Big Ten/Pac-10 if it is to reverse its ratings slide. It needs the Big Ten to expand into another major media market. It needs to attract bigger name celebrities and corporate brands. It also needs to find a "weenie," an attraction at the end of the parade that will encourage viewers to sit through the whole thing. (The Macy's Parade has Santa Claus in this role.)

Due to the logistics and timing of the parade and the game, the two teams' bands can't play this role for the Rose Parade, they need to be at the front so that they can get to the stadium in time for pre-game shows.

But further weakening or abolishing the game and conference tie-ins certainly will seal the fate of the parade.

From a reader at 67.49.123.54 on January 6, 2010 at 10:00 PM

If the argument for this crapfest we call BCS (and thus against a playoff) is that we need it to subsidize a parade, that's a non-argument. D-I college football deserves a playoff, just like EVERY other NCAA sport, just like EVERY other division of NCAA football. If the best reason for keeping bowls around is to subsidize parades -- that's not even an argument. That's like arguing that we should keep the bowl system because it's good for chambers of commerce. It isn't the job of NCAA sports to subsidize a parade.

From a reader at 76.168.142.118 on January 6, 2010 at 10:26 PM

Your financial analysis presumes that the Rose Parade wouldn't live within its means if the Rose Bowl game didn't cover the deficit. It runs a $3 million deficit because it CAN, not because it MUST in order to happen.

Downscaling it back to a parade rather than an overproduced television show facsimile of a parade wouldn't necessarily be a bad thing.

Given how the economic impact of these types of events is "measured" it might even be a good thing for Pasadena and the surrounding area for that to happen. Inglewood for all intents and purposes lost the Forum when Staples Center was built, but benefited in the end by not being so dependent on it. See http://controller.lacity.org/LAfinalRpt.pdf

From a reader at 98.226.169.67 on January 7, 2010 at 12:02 AM

"Many playoff proposals in the mix lately include hosting playoff games at major bowl sites; obviously Pasadena would be one of them. So there'd still be a game at the Rose Bowl. And there'd still be a parade."

And I disagree that the game held in Pasadena would be a lower level game than it is now. The Rose Bowl is one of them most prestigious bowls and I doubt the BCS would overlook that.

I guarantee that if the BCS goes to a tournament the parade will happen same as always with very little difference in the economic bottom line.

From a reader at 173.13.195.102 on January 7, 2010 at 2:47 PM

What happens if the ratings keep going down for the Rose Bowl Parade? No offense, but ratings are a sign of what people like and/or want. Regardless if the current system stays or your's is implemented, what happens if the Rose Bowl Parade continues it's slide and starts losing money? A playoff would be ok then? I'm not saying a playoff is the best solution (I actually like the system now, although the actual BCS standings are the true flaw in the system), but it does seem to be the most popular way the people want to see a champion decided (even though NFL style playoffs aren't a true measure of the best team; see the Patriots in 2007-2008 who finished 17-1 and 1-1 vs the Giants).

Currently there are 4 BCS bowls. Currently only one of those sites gets to host 2 games. An 8 team playoff would allow all but one to host 2 games during the playoffs. The odd man out could be rotated yearly, much like the location of the current BCS bowl is now. All other bowls prior to the playoff bowls could still be played. And the locations of the current bowls can be kept where they are now, preserving the "vacation spots", and allowing half the fans of the round one winners to stay for a second game the following week. Just an idea, lol. One that didn't take much time to think of (I'm sure there are holes). I can't believe there aren't ace economists and accountants out there to consult with that can come up with a truly beneficial system.

From Robert Niles on January 7, 2010 at 4:06 PM

The Rose Parade is simply the most visible and popular symbol of the economic activity surrounding the bowl system. No, it's not the job of D-1 football to subsidize parades, but nor should university leaders enact changes that destroys hundreds of million dollars in economic activity.

Many playoff supporters wish to believe that the significant economic benefits of the bowl system do not exist. Or that people would travel to lower round playoff games, and spend the same amount of money, that they now spend on bowl games and festivals. Unfortunately for that argument, the benefits do exist, and the fact that the NCAA basketball tournament ranks *below* the Rose Bowl alone for economic impact suggests that a playoff cannot guarantee a higher return than the bowl system.

It is interesting question to suppose how the Rose Parade might go forward with half its budget eliminated. But why should that question have to be entertained, when we have a functional system now in place that could become even stronger with a few tweaks? Why go looking for trouble?

And if football fans think a playoff will eliminate controversy over the selection and seeding of teams... keep dreaming, folks. That controversy's a given, and cannot be avoided, so long as more than a dozen or so teams play D-1 ball. So why not go with a proven system that delivers hundreds of millions of dollars in benefits to colleges and communities?

From a reader at 24.192.75.156 on January 9, 2010 at 11:47 PM

Very good article. I agree and don't want to see a playoff. I love the bowls and everything that goes with them. It's such a unique ending to a season.

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