College football cancellations will cost big universities billions of dollars

Just two months ago, despite the ongoing pandemic, college football insiders widely expected the fall season to happen as planned, and the biggest question was whether schools would be able to host fans in the stands at their games. Even after the Ivy League canceled fall sports last month, it appeared the “Power 5” conferences (Big Ten, Big 12, SEC, ACC, and PAC-12) would still play on.

Now it’s all crumbling. On Tuesday, the Big Ten announced it will not play football in the fall. The PAC-12 quickly followed. The MAC and Mountain West Conference, non-Power 5 conferences, canceled their fall seasons over the weekend. Of the 130 schools in the FBS system (Football Bowl Subdivision), 53 now say they won’t play in the fall.

The Big Ten and PAC-12 comprise 26 of the 65 Power 5 schools, including big names like Ohio State, Michigan, Michigan State, and Penn State in the Big Ten, and USC, UCLA, Stanford, and Oregon in the PAC-12.

INDIANAPOLIS, INDIANA - DECEMBER 07: Brutus Buckeye, the Ohio State Buckeyes mascot on the field during the Big Ten Championship game against the Wisconsin Badgers at Lucas Oil Stadium on December 07, 2019 in Indianapolis, Indiana. (Photo by Justin Casterline/Getty Images)
Brutus Buckeye, the Ohio State Buckeyes mascot on the field during the Big Ten Championship game against the Wisconsin Badgers at Lucas Oil Stadium on December 07, 2019 in Indianapolis. (Photo by Justin Casterline/Getty Images)

The Big Ten and PAC-12 claim they will aim to play in the spring, but spring college football would not be feasible for a range of reasons, including the unlikelihood of a widely available COVID-19 vaccine by spring, and the proximity to the fall college football season. (Former Ohio State University football coach Urban Meyer declared on Tuesday, “You can't ask student-athletes to play two seasons in one calendar year.”) Moreover, the biggest college stars will surely opt out of playing in the spring to prepare for the NFL Draft.

Canceling the fall season is widely seen as a cancellation of the entire 2020 season. And it will hit the financials of big universities hard.

More than $4 billion in lost revenue

At Division I schools, financing of all sports flows from football. The typical Power 5 athletic department gets well over half of its total revenue from football. In 2019, Power 5 schools reported more than $1 billion from football ticket sales.

According to a new report from Washington University in St. Louis, Power 5 schools stand to lose $4 billion in combined revenue without a 2020 football season. And that’s a conservative estimate: it doesn’t include broadcast revenue, conference payouts from bowl games and the College Football Playoff, fees that smaller schools get for playing guarantee games (or “cupcake games”) against bigger schools, corporate sponsorships, and missed donations from boosters. A study from USA Today pegs the number at $4.1 billion. The total losses will almost surely be higher.

NEW ORLEANS, LOUISIANA - JANUARY 13: Head coach Ed Orgeron of the LSU Tigers raises the National Championship Trophy with Joe Burrow #9, Grant Delpit #7, and Patrick Queen #8 after the College Football Playoff National Championship game at the Mercedes Benz Superdome on January 13, 2020 in New Orleans, Louisiana. The LSU Tigers topped the Clemson Tigers, 42-25. (Photo by Alika Jenner/Getty Images)
NEW ORLEANS, LOUISIANA - JANUARY 13: Head coach Ed Orgeron of the LSU Tigers raises the National Championship Trophy with Joe Burrow #9, Grant Delpit #7, and Patrick Queen #8 after the College Football Playoff National Championship game at the Mercedes Benz Superdome on January 13, 2020 in New Orleans, Louisiana. The LSU Tigers topped the Clemson Tigers, 42-25. (Photo by Alika Jenner/Getty Images)

To zoom in on one school, take Louisiana State University, last season’s college football champion.