Montana State made it all the way to the championship game of the FCS playoffs last season and the school lost tens of thousands of dollars in the process.

In fact, officials say, most of the 24 teams that go to the playoffs lose money or break even.

That’s just wrong, Big Sky Conference Commissioner Tom Wistrcill said, and it is among the reasons Football Championship Subdivision commissioners are exploring a proposal from a private equity firm that could turn the FCS playoffs into a money-maker for the schools.

Leaders of Sequence Equity gave a presentation to FCS commissioners in Chicago last week. Sequence Equity co-founders Marcus Stroud and Brandon Allen, reached by phone, declined to discuss details of their proposal and said commissioners would take the lead in discussions with the NCAA, which also declined to comment.

Stroud played football at the FCS level, at Princeton, and his father, also named Marcus, played in the NFL in the 1990s. He said his firm and the commissioners are in early discussions. “Everything is educational right now,” he said.

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Describing the proposal, Wistrcill said the FCS conferences would be the majority owners of the playoffs and Sequence Equity would hold a minority stake. According to Hero Sports, which first reported the proposal, Sequence would offer tens of millions of dollars in investment and take over the operation of the playoffs.

Sequence Equity gave the commissioners a projected annual revenue figure, but Wistrcill declined to make it public.

Playoff revenue would be directed to the FCS conferences to split among schools similar to how the Bowl Subdivision’s College Football Playoff directs proceeds, Wistrcill said. The CFP and bowl games do not operate under the NCAA’s purview.

Another obstacle could be the NCAA’s television contract with ESPN. The FCS playoffs are included in a contract running through 2032 that pays the NCAA $115 million annually to televise championships in 40 sports.

North Dakota State’s 35-32 win over Montana State in the 2024-25 championship game on Jan. 6 averaged 2.4 million viewers and was the second-most-watched FCS title game on ESPN. Viewership peaked at 3.1 million viewers. The overall average viewership for all FCS playoff games was 1.3 million across ESPN platforms, most since 2009-10.

Montana State’s bottom line for the playoffs was a $40,000 loss.

The Bobcats hosted three playoff games and were required to guarantee the NCAA 85% of the revenue, according to figures provided by the school. MSU, which ranked second in FCS attendance last year, averaged just under 19,000 fans for the three games and was able to keep $190,000.

The NCAA paid MSU $130,700 to help cover costs for the trip to Frisco, Texas, for the championship game. MSU ended up spending $360,000.

“We’ve had great success with great crowds in some of our venues, so it’s like, OK, if there’s value out there, let’s listen to people who think there’s value and how could we restructure this so it’s a different financial outcome,” Wistrcill said. “After the NFL and after FBS football has theirs, what do we need to do to start to get a bigger share?”

Jeff Schemmel, founder and president of the consulting firm College Sports Solutions, said the FCS playoffs are under-promoted and under-valued.

The last four FCS title games have matched Big Sky and Missouri Valley Football Conference teams and at least one team from one of those conferences has played for the championship every year since 2008.

“I think if there’s incentives for other FCS leagues to invest in their programs, then I think it makes it all better,” Schemmel said. “Rather than the Dakotas and Montanas playing for the national championship every year, maybe the East Coast or the South get involved.”

For all the promise of private equity, Schemmel said, he has a hard time envisioning the NCAA allowing the the FCS playoffs to be run by an outside entity. He said it would be more likely to see private equity enter a partnership with the NCAA.

Schemmel said several conferences and athletic departments he’s worked with have explored private equity investment, but none have followed through.

“Once you bring in private equity, that means those investors are looking for a return and a substantive return,” he said. “From an institutional perspective, that’s been difficult for schools to get their arms around, to share some of the revenue, to share whatever the return is on that investment to make both parties happy.”