This is the first post in a three-part series about the college football's bowl system, the Bowl Championship Series.

When Louisiana State University and the University of Alabama meet in tonight's Bowl Championship Series (BCS) National Championship game in New Orleans, college football's top prize will be on the line. More than 75,000 will be in attendance, and millions will watch on TV. The Sugar Bowl, host to this year's game, stands to make millions of dollars in profits. And little, if any, of it will be subject to federal taxes.

That's because the Sugar Bowl and the championship game, like the three other bowls that make up the BCS, are classified as tax-exempt nonprofit charities, set up with missions to do public good with the money they earn and spend. In 2007, the last time New Orleans hosted both the Sugar Bowl and the BCS title game, the games generated $34.1 million in revenue — $11.6 million of that was tax-free profit.

The BCS, a consortium of the 11 Football Bowl Subdivision conferences and the University of Notre Dame, has been in place since 1998 and manages the five biggest bowl games — the Rose, Orange, Fiesta, and Sugar Bowls, and the BCS National Championship Game. The revenue generated by the BCS games and other nonprofit bowls — $261 million in 2009 — along with lavish trips for executives, large compensation packages for their CEOs, and scandals involving potentially illegal political donations have raised questions about why the bowls are classified as nonprofit charities and whether they should continue to be in the future.

The reason bowl profits aren't taxed “is because it's supposed to be serving a public purpose,â€

This is the second part of a three-part series on college football's bowl system, the Bowl Championship Series. You can read the first part here.

Bowl season, college football's month-long end-of-season extravaganza, generates millions in revenue and often millions in profits for the organizations that run each bowl game. But because many of those bowls are classified as nonprofit charities, they often pay little, if any, taxes on those earnings.

The largest bowls — the five that make up the Bowl Championship Series — dole out huge salaries to their CEOs and send executives on lavish trips. At the same time, several of them have received millions of dollars in tax subsidies from the states that play host to them, and the taxpayer-financed public universities that play in the games often lose money by participating. That has fueled questions about why the bowls are classified as tax-exempt nonprofits and whether they should be in the future.

The Bowl Championship Series was formed in 1998 as a consortium of the 11 Football Bowl Subdivision conferences and the University of Notre Dame. At the end of the season, 10 schools send teams to the five BCS bowls — the Rose, Orange, Fiesta, and Sugar Bowls and the BCS National Championship game. 57 of the 67 schools that make up the six major conferences that receive automatic invites to those games are public universities that depend on taxpayer funds. But many of them lose substantial sums of money from expenses incurred traveling to and participating in BCS games.

In 2011, Virginia Tech's athletic department lost more than $420,000 from the school's appearance in the Orange Bowl. Had the Atlantic Coast Conference, of which Virginia Tech is a member, not helped cover its losses, the school would have lost $1.3 million in 2008, $2.2 million in 2009, and $1.6 million in 2011, all years in which it appeared in a BCS bowl. Tech isn't alone: over a three-year span, universities lost an average of $331,137 in BCS bowls, according to the Arizona Republic. The average loss in non-BCS games in 2011 was $139,604.

The BCS does, in theory, provide money to schools in other ways to help them make up those losses. Athletic conferences that have a participant in a BCS game receive payouts from BCS bowls — the six major conferences will split a total of $145.2 million this year — that is then divided between the schools. But as HBO Real Sports found during an investigation into the bowl system, those payouts often aren't as lucrative as the bowls claim.

In an interview with HBO, a tax adviser to 23 bowls set up as charities said most bowls “pay out 75 to 80 percent of all revenue to schools.â€

This is the final part of a three-part series about college football's bowl system, the Bowl Championship Series. Read Part 1 and Part 2.

Alabama trounced LSU 21-0 in last night's Bowl Championship Series National Championship game, earning the school's 14th national championship. But while the game settled questions regarding who receives college football's top prize, many other questions about the BCS remain unresolved.

The BCS, a consortium of the 11 Football Bowl Subdivision conferences and the University of Notre Dame, manages college football's five biggest bowl games — the Rose, Fiesta, Orange, and Sugar bowls and the BCS National Championship. Because those bowls are set up as tax-exempt, nonprofit charities, they pay little, if any, taxes on huge profits, even as they receive millions in taxpayer subsidies from state and local governments.

Amid recent scandals and reports involving the Fiesta and Sugar bowls, critics have raised questions about why the games are classified as charities and whether they should continue to be classified that way in the future.

The question of whether bowl games should or should not be classified as nonprofit charities is ultimately up to the IRS. But recently, public scrutiny toward the BCS has intensified. The Department of Justice is investigating whether the BCS violated federal antitrust laws, and after scandals involving potentially illegal political donations from Sugar and Fiesta Bowl employees to officials in Arizona and Louisiana, anti-BCS group PlayoffPAC asked the IRS to investigate multiple bowls. That bowl CEOs are making, on average, more than $500,000 a year and spending money on lavish trips for executives, donors, and other affiliates has raised even more questions and prompted an internal investigation at the Fiesta Bowl.

Bowl games claim that they are nonprofit charities by touting the fact that they generate hundreds of millions of dollars in economic benefits for state and local economies, help universities, and provide aid to charities in the communities that host the games. But separate investigations into such claims have found that the bowls provide much less aid than they claim, particularly to public universities and local charities. An HBO Real Sports investigation, for instance, found that while bowls claim to give “tens of millionsâ€