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teams or the sponsoring agency. All nongame revenue should be excluded from the report. A game-related event is any activity for which the sponsoring agency, or an affiliate thereof, meets any one of the following criteria: (1) uses the name of the bowl; (2) is associated with any NCAA institution participating in the bowl game or its constituency, or uses the name or marks of such institution in the title or promotion of the event; (3) requires the participation of any member or representative of a participating institution or its constituency; and/or (4) the event promotes the bowl game.


Although a sponsoring agency may confront a potential tax liability on a portion of its revenues, any indemnification or escrow above the applicable minimum distribution must voluntarily be negotiated between the participant and game management.


The subcommittee or representatives designated by it may conduct audits of the financial information of an agency sponsoring a bowl game and other organizations and activities affiliated with it. Audits will be conducted in the summer and will review the immediate past game. Any involvement by a sponsoring agency’s accounting firm in the NCAA auditing process is at the expense of the sponsoring agency. Each bowl game shall be audited at the discretion of the Postseason Football Licensing Subcommittee.

Distribution of Gross Receipts

Each competing institution’s share of the gross receipts must be paid immediately upon completion of the audit of the game, but not later than April 1. Out of the sponsor’s portion of the gross receipts, all game and administrative expenses shall be paid by the sponsoring agency.

Letter of Credit

The licensing process may require a sponsoring agency annually to secure an irrevocable letter of credit issued by a United States financial institution to guarantee the minimum payoff required for each team participating in a postseason game. The letter of credit must be submitted not later than September 1. A sample of the letter of credit may be found on the NCAA Web site at www1.ncaa.org/membership/postseason_football/forms.

1. Letters of credit in the amount of $2 million for initial bowl applications are due April 1.

  • 2.

    Each licensed postseason football bowl game that has not distributed an average minimum of $1 million to each of the participating institutions during the preceding three-year period annually shall secure an irrevocable letter of credit in the amount of the contractual financial distribution commitments between the sponsoring agency and participating teams. The football licensing committee at its discretion may require a sponsoring agency to issue a letter of credit regardless of its payout based on its review and knowledge of its financial position and its ability to make team payouts.

  • 3.

    Bowl management must direct the financial institution that will provide the letter of credit to send it to the NCAA not later than September 1.

  • 4.

    The letter of credit is payable to the NCAA.

  • 5.

    The period of time covered by the letter of credit is from September 1 until the participating institutions have notified the NCAA that they have received their


distribution of receipts, or not later than May 1 each year.

  • 6.

    In the event that a game is licensed (with or without conditions) and the game is not played for reasons the committee believes are within the control of the sponsoring agency, the agency is obligated to reimburse the conference or institution contracted to play the game for any expenses incurred in preparation for the game.

  • 7.

    The NCAA is responsible for distributing the letter-of-credit revenues to participating institutions in the event of default.

  • 8.

    The sponsoring agency is responsible for securing the letter of credit, including any financial obligations required by the issuing financial institution. Participating institutions or conferences are prohibited from providing the sponsoring agency with a letter of credit.

Licensing Fee

The $12,000 annual licensing fee is a permissible deduction before identifying total gross receipts. The licensing fee is due November 1 of each year.

Loss-of-Income Insurance

The management of each licensed postseason football game annually shall make available loss-of-income insurance for a participating institution to purchase at its option and expense, which may be deducted from the respective institution’s share of gross receipts. This expense shall not be deducted from total gross receipts.

Bowl-Based Revenue/Minimum Guarantee

On an annual basis, in an effort to indicate local community support, the sponsoring agency of a postseason bowl game must generate bowl-based revenue equal to or greater than all the contractual financial commitments from the two participating institutions and conferences. It is recommended that the distribution to the participating teams and conferences meet, at a minimum, the participating teams’ reasonable contractual travel obligations and participation expenses.


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