Michigan and Ohio State may be college football’s fiercest rivals, but on the financial side, the Buckeyes’ success directly benefits the Wolverines. As a College Football Playoff seed, Ryan Day’s Ohio State is generating revenue for the Big Ten that gets distributed across the conference, including to Michigan. Rivalry aside, postseason wins translate into shared earnings. Here’s a complete breakdown of how the Big Ten is cashing in on the CFP this season.

According to the CFP revenue distribution scheme, all 12 teams qualifying for the College Football Playoff will earn $4 million for their conference. For moving through every round of the CFP, the teams will add prize money to their conference funds. 

A team adds $4 million for reaching the quarterfinals, $6 million for qualifying for the Semifinals, and another $6 million for the National Championship game. One program can earn up to $20 million by reaching the national championship game. The money they earn will be shared among the conference schools as part of the fund.

Since three schools represent the Big Ten in the College Football Playoff, Ohio State, Indiana, and Oregon, they add $12 million to the conference funding. All three teams earned a spot at the Quarterfinals. Ohio State and Indiana are the top-four CFP seeds. Oregon by defeating James Madison in the CFP first round. This adds $12 million to the existing B1G funds, totaling $24 million so far.

Since there are 18 teams in the B1G conference, the revenue sharing will be divided into eighteen equal parts. In which Ryan Day’s Buckeyes, just by qualifying for the Playoff, contributed $222K for each team, including its rival Michigan. Since Ohio State reached the Quarterfinals, the funding would be doubled to $444K. If you take the overall revenue distribution, earned by Indiana, Ohio State, and Oregon so far, each team will be receiving $1.33 million as the conference funding.

If any of the B1G team could enter the National Championship game, that team alone will contribute, $1.11 million for each team in the conference. Despite the rivalry, one program’s success is, in one way or another, impacting the other team’s financial funding, being part of the same conference.

College Football Playoff Revenue Distribution Scheme

The CFP prize money isn’t just about rewarding winners, but ensuring that the whole teams in the conference thrive. The revenue distribution is carefully crafted to support teams, conferences, and academics.

Each conference gets a base pay to ensure every conference (both the Power Five and Group of Five) has the necessary resources to support its member schools. But the teams that make it into the playoffs earn additional payouts. As far as the team advances, the more money their conference receives, creating a financial incentive. 

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Independent teams, such as Notre Dame, that make the playoffs receive their own payout, ensuring they have the financial support to compete at the highest level. The earned funds can be used for scholarships to upgrading facilities to provide a better experience for student-athletes.

While the powerhouse programs may dominate the spotlight, the revenue-sharing scheme gives all teams an equal chance to grow, along with the other conference teams. It can help smaller schools invest in recruiting, facilities, and coaching staff, and help level the playing field and keep the sport exciting.