Each of the BCS bowl games is operated by a nonprofit organization dedicated only to the execution of that bowl game. The nonprofit is operated by a large committee, most of whom are volunteers. The mission of these bowls is to make charitable donations to the local area, using the proceeds of the bowl games. However, with each committee lacking any central oversight or the requirement for public reporting, the bowls and bowl committees appear to be benefiting the most. In 2010, the Fiesta, Orange and Sugar bowls gave out just $914,000 in charitable grants combined. This is despite having budgets of $12 million to $27 million each.

Where does the rest of that money go? Operating costs for bowls are very high, but one expense that sticks out is compensation for the select few committee members who are employed by the bowl. Bowl chief executives make more than counterparts at public companies with comparable revenue. Here’s a brief list, including bonus:

• Sugar Bowl: $594,000
• Fiesta Bowl: $620,000
• Orange Bowl: $506,000
• Rose Bowl: $625,000

Keep in mind these are overseeing annual expense budgets of at most $27 million. A comparable range of nonprofits with $10 million to $25 million budgets have an average executive pay of $225,000. The bowl executive pay even exceeds the median pay at large public universities.

Bowl games also are free to use their funds for other uses as well, which have come under criticism lately. Committee members can take paid “scouting trips” to see games of possible bowl invitees during the regular season. The Orange Bowl recently provided a free Caribbean cruise to 40 athletic directors, conference commissioners and guests.

Perhaps the worst use of funds involved the recent Fiesta Bowl scandal, which included such expenditures as campaign contributions (illegal for nonprofits, as well as being laundered through intermediaries), gold coins, a $33,000 birthday party for the chief executive, and a trip to an adult entertainment establishment where “business was of course conducted.” That scandal, which included an attempted cover up, was worthy of a 284-page report and nearly cost the Fiesta Bowl its BCS status.

Louisiana public campaign finance records also have shown political contributions from the Sugar Bowl. As part of their quest for an end to the BCS system, a small group of lawyers calling themselves PlayoffPAC have filed several complaints with the IRS, challenging the nonprofit status of the bowl games.

Next time you hear about the “big-money BCS” opposing a playoff system, keep in mind these bowl games aren’t a corporation seeking to further their reign. These are committees of highly paid individuals, long entrenched in a few large communities, who are willing to fight to keep their select bowl games. With the money and willingness to make campaign contributions and give free vacations to influencers, it’s no wonder there has been little progress despite the annual questions about the effectiveness of the BCS.

Bill Sayer is a financial analyst in the insurance industry and holds a degree in economics. A native of Upstate New York, Bill enjoys watching college football, the NFL, NHL and Premier League soccer from his home in Palmyra. Have a suggestion, link or question?