First, the BCS one and two ranked teams are slotted directly to the national title game.
Rose Bowl: USC v. Texas
Second, all remaining conference champions are slotted directly to their conferences' normally affiliated bowl.
Orange: Should receive the ACC champ, so presumably Miami, Fla.
Fiesta: Would normally be the Big-XII champ, but Texas is going to the Rose instead.
Sugar: Has first choice of Big East or SEC champ, so probably LSU.
Next, the compensatory picks are handed out before the at-large selections are made. Since the Fiesta Bowl presumably loses their affiliated conference pick (Big-XII, Texas) the Fiesta gets first pick preceding all other bowls. So Orange, Fiesta, Sugar becomes Fiesta, Orange, Fiesta, Sugar.
The Fiesta will take Notre Dame. That's pretty much a slam dunk. Really, the Orange is in the drivers' seat, since they get to choose between the Big-10 champ, Big East champ, and eligible at-large teams. The Orange Bowl essentially has the choice of marketing a rematch of two of the great Fiesta Bowls: PSU/Miami or OSU/Miami. Either one is a ratings bonanza for the Orange.
The Fiesta gets the following pick, and will most likely take whichever of the two Big-10 teams the Orange didn't take, since PSU/ND and OSU/ND are ideal choices. This leaves the Sugar Bowl the Big East champ to face the SEC champ.
Any combination of PSU/OSU v. Miami/ND is huge, and both the Orange and Fiesta will prefer one of these setups over having Alabama, Oregon, Virginia Tech, or anyone else.
Bottom line is, beat Michigan and OSU should be in the BCS as an at-large pick.
Dryden, great summary of the BCS situation. The only thing I want to add is that a non-conference winner that ends up at #3 or #4 in the BCS would get an automatic at-large bid. (If #3 gets an auto-bid in this manner, the rule does NOT apply for #4).
This can hurt tOSU if VaTech or Alabama move up to #4. These teams won't jump USC or Texas, even if those teams lose, and I don't think either of those teams can jump Penn State if Penn State wins Saturday. And they'll only jump Miami and LSU if they lose. If Penn State loses, we can earn our spot with a win over scUM.
So the problem exists in this scenario: Penn State beats MSU. LSU wins 2 games and goes to the CCG and loses to Georgia. Miami drops their CCG to Florida State. At that point, Bama (with a win over Auburn but not a trip to the CCG) or VaTech (with wins at Virginia and over N. Carolina but no trip to the CCG) could reach #4 in the BCS and then we're screaming because ND gets the only 'free choice at-large' bid, and West Virginia (or South Florida if they win out) gets an undeserved Big East champion spot.
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