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 September 10, 2012:
1. USC (PAC 12 Champion)
2. LSU (SEC Champion)
3. Alabama (At Large SEC)
4. Oklahoma (Big 12 Champion)
5. Oregon (At Large PAC 12)
6. Florida State (ACC Champion)
7. Michigan State (Big 10 Champion)
8. Georgia (At Large SEC)
9. Clemson (At Large ACC)
10. South Carolina (At Large SEC)
11. Louisville (Big East Champion)
12. Boise State (Mountain West Champion)
13. Ohio (MAC Champion)
14. Louisiana Tech (WAC Champion)
15. Southern Miss (C-USA Champion)
16. Florida International (Sun Belt Champion)
Dropped out: Arkansas (#8, At Large SEC), West Virginia (#9, At Large Big 12)
Number Of Teams by Conference:
SEC (4), ACC (2), PAC 12 (2), Big 10 (1), Big 12 (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) Florida International at (1) USC
(9) Clemson at (8) Georgia
(12) Boise State at (5) Oregon
(13) Ohio at (4) Oklahoma
(11) Louisville at (6) Florida State
(14) Louisiana Tech at (3) Alabama
(10) South Carolina at (7) Michigan State
(15) Southern Miss at (2) LSU
Round 2
(8) Georgia vs (1) USC
(5) Oregon vs (4) Oklahoma
(6) Florida State vs (3) Alabama
(7) Michigan State vs (2) LSU
Round 3
(4) Oklahoma vs (1) USC
(3) Alabama vs (2) LSU
Championship Game
(2) LSU vs (1) USC
