Round 1 games would be hosted by the higher ranked seeds. Rounds 2 - 4 would incorporate the bowl system with host cities/bowls bidding to host the games. The "Big 4" BCS bowls would be permanent playoff hosts on a round-rotating basis (Championship, semi-finals and 1 round 2 game).
For the week of October 17, 2011:
1. LSU (SEC Champion)
2. Oklahoma (Big 12 Champion)
3. Alabama (At Large SEC)
4. Wisconsin (Big 10 Champion)
5. Oklahoma State (At Large Big 12)
6. Boise State (Mountain West Champion)
7. Stanford (PAC 12 Champion)
8. Clemson (ACC Champion)
9. Oregon (At Large PAC 12)
10. Arkansas (At Large SEC)
11. Nebraska (At Large Big 10)
12. West Virginia (Big East Champion)
13. Houston (C-USA Champion)
14. Louisiana-Lafayette (Sun Belt Champion)
15. Temple (MAC Champion)
16. Nevada (WAC Champion)
Dropped out: Michigan (#11, At Large Big 10), Hawaii (#14, WAC Champion)
Number Of Teams by Conference:
SEC (3), Big 10 (2), Big 12 (2), PAC 12 (2), ACC (1), Big East (1), C-USA (1), MAC (1), Mountain West (1), Sun Belt (1), WAC (1), Independent (0)
Match ups round by round assuming higher seeds win.
Round 1
(16) Nevada at (1) LSU
(9) Oregon at (8) Clemson
(12) West Virginia at (5) Oklahoma State
(13) Houston at (4) Wisconsin
(11) Nebraska at (6) Boise State
(14) Louisiana-Lafayette at (3) Alabama
(10) Arkansas at (7) Stanford
(15) Temple at (2) Oklahoma
Round 2
(8) Clemson vs (1) LSU
(5) Oklahoma State vs (4) Wisconsin
(6) Boise State vs (3) Alabama
(7) Stanford vs (2) Oklahoma
Round 3
(4) Wisconsin vs (1) LSU
(3) Alabama vs (2) Oklahoma
Championship Game
(2) Oklahoma vs (1) LSU