College football is one of the most popular spectator sports throughout much of the United States, and the top schools generate tens of millions of dollars in yearly revenue.[1][2] Top FBS teams draw tens of thousands of fans to games, and the ten largest American stadiums by capacity all host FBS teams or games. Starting July 1, 2021, college athletes are now able to get paid for the use of their image and likeness. Prior to this date colleges were only allowed to provide players with non-monetary compensation such as athletic scholarships that provide for tuition, housing, and books.

Unlike other NCAA divisions and subdivisions, the NCAA does not officially award an FBS football national championship, nor does it sanction a playoff tournament to determine such a champion on the field. Instead, organizations such as the Associated Press and AFCA have historically sought to rank the teams and crown a national champion, by taking a vote of sports writers and coaches, respectively. In place of such a playoff, various cities across the United States hold their own post-season contests, called bowl games, in which they traditionally invite teams to participate in them. Historically, these bowl games were mostly considered to be exhibition games involving a payout to participating teams. However, in the modern era they are considered the de facto post-season. There have been agreements in recent decades (such as the Bowl Coalition from 1992 to 1994, the Bowl Alliance from 1995 to 1997, the Bowl Championship Series from 1998 to 2013, and the College Football Playoff from 2014 to the present) by the premier FBS conferences and bowl games to organize matchups so that the FBS national championship is decided on the field.

Contents 1 Overview 2 Scheduling 3 History 4 Television 5 Teams and conferences 5.1 Conferences 5.1.1 History 5.1.2 Current conferences 5.2 Transition teams 6 Realignment 7 Awards 8 Maps of teams 8.1 1927 8.2 1956 8.3 1991 8.4 2021 8.5 Transitioned schools 9 Programs by state 9.1 Alabama 9.2 Arizona 9.3 Arkansas 9.4 California 9.5 Colorado 9.6 Connecticut 9.7 Florida 9.8 Georgia 9.9 Hawaii 9.10 Idaho 9.11 Illinois 9.12 Indiana 9.13 Iowa 9.14 Kansas 9.15 Kentucky 9.16 Louisiana 9.17 Maryland 9.18 Massachusetts 9.19 Michigan 9.20 Minnesota 9.21 Mississippi 9.22 Missouri 9.23 Nebraska 9.24 Nevada 9.25 New Jersey 9.26 New Mexico 9.27 New York 9.28 North Carolina 9.29 Ohio 9.30 Oklahoma 9.31 Oregon 9.32 Pennsylvania 9.33 South Carolina 9.34 Tennessee 9.35 Texas 9.36 Utah 9.37 Virginia 9.38 Washington 9.39 West Virginia 9.40 Wisconsin 9.41 Wyoming 10 See also 11 References Overview

Number of FBS teams per state/territory as of 2014:[3] Six or more FBS schools in the state Five Four Three Two One No FBS schools The FBS is the highest level of college football in the United States, and FBS players make up the vast majority of the players picked in the NFL Draft.[4] For every sport but football, the NCAA divides schools into three major divisions: Divisions I, II, and III. However, in football, Division I is further divided into two sub-divisions: the Bowl Subdivision, abbreviated as the FBS, and the Championship Subdivision, abbreviated as the FCS.[5] Divisions are themselves further divided up into conferences, which are groupings of schools that play each other in contention for a conference championship. The FBS currently has ten conferences, which are often divided into the "Power Five conferences" and the less prominent "Group of Five".

Although FCS programs can draw thousands of fans per game, many FCS schools attempt to join the FBS in hopes of increased revenue, corporate sponsorship, alumni donations, prestige, and national exposure.[6] However, FBS programs also face increased expenses in regards to staff salaries, facility improvements, and scholarships.[6] The athletic departments of many FBS schools lose money every year, and these athletic departments must rely on subsidies from the rest of the university.[7] In many states, the highest-paid public employee is the head coach of an FBS team.[8] FBS schools are limited to a total of 85 football players receiving financial assistance.[9] Nearly all FBS schools that are not on NCAA probation give 85 full scholarships.[citation needed]

In order to retain FBS membership, schools must meet several requirements.[10] FBS schools must have an average home attendance of at least 15,000 (over a rolling two-year period).[10] An FBS school must sponsor a minimum of 16 varsity intercollegiate teams (including football), with at least six men's or coeducational teams and at least eight all-female teams.[10] Across all sports, each FBS school must offer at least 200 athletic scholarships (or spend at least $4 million on athletic scholarships) per year, and FBS football teams must provide at least 90% of the maximum number of football scholarships (which is currently 85).[10]

Scheduling Further information: Bowl game, List of college bowl games, and Bids to college bowl games The FBS season begins in late August or early September and ends in January with the College Football Playoff National Championship game. Most FBS teams play 12 regular season games per year, with eight or nine of those games coming against conference opponents.[11] All ten FBS conferences hold a conference championship game to determine the winner of the conference.[12] Between conference games, non-conference games, a conference championship game, and up to two bowl games if ranked among the top four college teams in the country by the College Football Playoff Committee. Only the four Playoff teams are eligible to participate in two bowl games in one post-season, and only the winners of the two playoff semifinal bowl games will play a 15th game when they meet in the College Football Playoff National Championship. The Hawaii Rainbow Warriors[13] and teams that play at Hawaii[14] get a special exemption and are allowed to play a thirteenth regular season game in order to defray travel costs,[11] so an FBS team that plays 13 regular season games, a conference championship game, a semifinal bowl game, and in the national championship game could theoretically play 16 games in a season. No team has played a 16th game in one season, due to the unlikelihood of a team playing Hawaii at some point, finishing the season ranked in the top four, opting in to a 13th regular season game, and then winning a Playoff semifinal game. It should be noted the theoretical 16th game has only been possible since the beginning of the College Football Playoff era in 2015.

Number of bowl games[15] Year Bowls Teams in bowls[16] 1968 11 N/A 1984 18 ~30% 1997 20 ~35% 2017 40[a] 60.5%[b] For non-conference regular season games, FBS teams are free to schedule match-ups against any other FBS team, regardless of conference. A small number of FBS teams are independent, and have total control over their own schedule. Non-conference games are scheduled by mutual agreement and often involve "home and homes" (where teams alternate as hosts) and long-established rivalries. A 2014 study found that teams from the stronger conferences frequently play non-conference games against teams from the weaker conferences or, occasionally, against FCS teams.[17] FBS teams are free to schedule up to forty percent of their games against FCS teams,[10] but FBS teams can only use one win per season against an FCS team for the purposes of bowl eligibility. Additionally, the FCS opponent must have averaged at least 90% of the FCS limit of 63 scholarship equivalents over a rolling two-year period.[18][c] An FBS team must schedule a total of five home games per year; for the purposes of scheduling, a "home game" must take place at a venue in which the team plays 50% of its "home games", although a team is allowed to count one neutral-site game against an FBS team toward the "home game" requirement.[20] FBS-FCS games, known as "money games," are often home games for the FBS team, and victories by FCS teams are usually considered to be upsets.[21] FCS teams receive hundreds of thousands of dollars for their participation in these games.[21]

New Year's Six Bowls Bowl Location Est. Rose Bowl Pasadena, CA Durham, NC (1942) Arlington, TX (2021) 1902 Orange Bowl Miami Gardens, FL 1935 Sugar Bowl New Orleans, LA Atlanta, GA (2006) 1935 Cotton Bowl Arlington, TX 1937 Peach Bowl Atlanta, GA 1968 Fiesta Bowl Glendale, AZ 1971 The Football Bowl Subdivision gets its name from the bowl games that many FBS teams play at the end of the year, although other college divisions also have their own bowl games. FBS bowl games are played at the end of the season in December or January, and collectively generate over $400 million per year as of 2012.[22] For the 2017–18 bowl season, there were 40 bowl games. In order to be bowl eligible, an FBS team must have a winning record. In certain cases, 5–7 and 6–7 teams can also be selected to bowls, usually to fill bowl vacancies.[23]

Many bowls have an established conference tie-in; for example, the Cheez-It Bowl provides a match-up between teams from ACC and the Big 12. A small number of long-established bowls played a major role in the Bowl Championship Series, which was used to select the national champion until 2015, and these bowls continue to play a major role in the College Football Playoff. Under the playoff, there are six major bowls, known as the New Year's Six, with automatic bids going to the conference champions of the Power Five conferences and the top-ranked member of the "Group of Five." Two of these bowls serve as semi-final games to the College Football Playoff National Championship game. Conferences receive millions of dollars for each school that appears in the playoff, and appearances in other bowls are also quite lucrative.[24] In addition to the regular bowls, some post-season bowls, such as the NFLPA Collegiate Bowl, match up teams of all-stars and NFL Draft entrants.

History NCAA Football Average Attendance Conf. 1983[25] 1993[25] 2003[26] 2014[27] SEC 64,842 62,789 74,059 77,694 Big Ten 67,471 63,535 70,198 66,869 Big 12 — — 56,362 58,102 Pac-12 47,248 47,919 51,608 52,702 ACC 42,608 44,056 51,938 50,291 AAC[d] — 38,039 46,870 29,193 MW — — 32,809 25,254 C-USA — — 32,346 20,455 Sun Belt — — 14,352 18,294 MAC 17,351 14,252 17,820 15,431 FBS 42,162 41,281 44,877 44,603 FCS 10,844 8,599 7,739 8,310 See also: History of American football College football has been played for over one hundred years, but the game and the organizational structure of college football have evolved significantly during that time. The first college football game was played in 1869, but the game continued to develop during the late 19th and early 20th century. During this period, Walter Camp pioneered the concept of a line of scrimmage, the system of downs, and the College Football All-America Team.[28] The 1902 Rose Bowl was the first bowl game in college football history, and the event began to be held annually starting with the 1916 Rose Bowl. In the 1930s, other bowl games came into existence, including the Sugar Bowl, the Cotton Bowl Classic, and the Orange Bowl. The 1906 college football season was the first season played under the IAAUS (which would later change its name to the NCAA) and the first season in which the forward pass was legal. The IAAUS had formed after President Theodore Roosevelt, responding to several deaths that had occurred during football games, requested that colleges find ways to make football a safer sport.[29] In 1935, the Heisman Trophy was presented for the first time; the award is generally considered to be college football's most prestigious individual award.[30] In 1965, the NCAA voted to allow the platoon system, in which different players played on offense and defense; teams had previously experimented with the concept in the 1940s.[31] In 1968, the NCAA began allowing freshmen to compete in games; freshmen had previously been required to take a redshirt year.[32] In 1975, after a growth of "grants-in-aid" (scholarships given for athletic rather than academic or need-based reasons), the NCAA voted to limit the number of athletic scholarships each school could offer.[33] In 1968, the NCAA required all teams to identify as members of either the University Division (for larger schools) or the College Division (for smaller schools), and in 1973, the NCAA divided into three divisions.[34] At the urging of several larger schools seeking increased autonomy and commonality, Division I-A was formed prior to the 1978 season; the remaining teams in Division I formed the Football Championship Subdivision or FCS (then known as Division I-AA).[35] In 1981, members of the College Football Association attempted to create a fourth division consisting solely of the most competitive schools, but this effort was defeated.[36] In the 1992 season, the SEC split into divisions and played the first FBS conference championship game. The Big 12 and Western Athletic Conference did the same for the 1996 season, and most conferences eventually adopted divisions and championship games.

The NCAA does not officially award an FBS football championship,[37] but several teams have claimed national championships. Other organizations have also sought to rank the teams and crown a national champion. The Dickinson System and other methods were formed in the early 20th century to select the best team in the country, and the AP Poll and the Coaches Poll began rankings teams in the middle of the 20th century. In many seasons, selectors such as the AP and the Coaches Poll designated different teams as national champions. Often, more than one team would finish undefeated, as the top teams were not guaranteed to play each other during the regular season or in bowl games. In 1992, five major conferences established the Bowl Coalition in order to determine the FBS champion. In 1998, the two remaining major conferences joined with the other five conferences to form the Bowl Championship Series. The BCS used a rankings system to match up the top two teams in the BCS National Championship Game.[38] However, even the BCS era saw split national championships, as in 2003 the AP Poll and the Coaches Poll selected different national champions. The College Football Playoff, with a four-team field, replaced the BCS starting with the 2014 season.

Currently as of March 2020, there is no unified system to provide FBS football players with financial compensation aside from collegiate scholarships. Leading the forefront of the movement on compensation is California governor Gavin Newsom. He stated, "Collegiate student athletes put everything on the line — their physical health, future career prospects and years of their lives to compete. Colleges reap billions from these student athletes' sacrifices and success but, in the same breath, block them from earning a single dollar," he said in a statement. "That's a bankrupt model — one that puts institutions ahead of the students they are supposed to serve. It needs to be disrupted." Newsom passed a law in California called the "Fair Play to Pay Act" making it the first state to allow student athletes to profit off their name, image and likeness. The law is scheduled to go in effect on January 1, 2023.[39]

Television Main article: College football on television College football was first broadcast on radio in 1921, and first broadcast on television in 1939.[40] Television became profitable for both schools and the NCAA, which tightly controlled the airing of games in the 1950s, 1960s, and 1970s.[41] The NCAA limited each football team to six television appearances over a two-year period.[41] The 1981 Supreme Court case NCAA v. Board of Regents of the University of Oklahoma & University of Georgia granted television rights to individual schools as opposed to the NCAA and allowed teams to televise all of their games.[42] After a period during which FBS schools negotiated collectively under the College Football Association, Notre Dame's 1991 television contract ushered in an era in which schools and conferences negotiate their own television contracts.[35][43] This new era of television led to several waves of conference realignment, most notably in 1996, 2005, and the early 2010s.[44] FBS games continue to be a major draw on television, as over 26 million people watched the 2014 BCS National Championship Game.[45]

National networks such as CBS, ABC, NBC, several ESPN networks, and several Fox networks have all covered the FBS, as have several regional and local networks. As conferences negotiate their own television deals, each conference is affiliated with a network that airs its home games. In the mid-2000s, college and conferences began to create their own television networks;[46] such networks include the Big Ten Network, BYUtv, the Longhorn Network, and the Pac-12 Network. In 2012, college football games drew over 400 million viewers.[47]

Teams and conferences Conferences FBS teams and conferences Year Conferences Teams 1980 13[48] 138 1990 9[49] 107 2000 11[50] 116 2010 11[51] 120 2021 10 130 History The Big Ten (then popularly known as the Western Conference) was founded in 1896, after which several other schools joined together to form conferences, including the Pacific Coast Conference, the MVIAA, the Southwest Conference, the Southern Conference, the Mountain States Conference (also known as the Skyline Conference), and the Border Conference. In 1928, six schools seceded from the MVIAA to form the Big Six Conference, which later expanded to the Big Eight in 1957; the remaining schools formed the Missouri Valley Conference. In 1932, several Southern schools formed the SEC after breaking away from the Southern Conference, and in 1953 several more schools seceded from the Southern Conference to form the ACC. In 1946, several Midwestern schools formed the MAC. Several elite Northeastern schools had formed the Eastern Intercollegiate Basketball League in 1901, and its members (plus Brown University, not an EIBL member at the time) signed the Ivy Group Agreement, which governed football competition between the signatories, in 1945; the Ivy League was formally founded in 1954, when the agreement was extended to cover all sports. In 1959, the Pacific Coast Conference dissolved, and most of its former members formed the new Athletic Association of Western Universities, which became the Pac-8 when more former PCC members joined. In 1962, several schools from the Mountain States Conference and the Border Conference formed the Western Athletic Conference. In 1969, the Pacific Coast Athletic Association (PCAA), later known as the Big West Conference, was formed by several Division II California schools that sought to join Division I.

Division I separated into Division I-A (the predecessor to the FBS) and I-AA (predecessor of the FCS) prior to the 1978 season. At that time, there were several independent I-A schools and twelve Division I-A conferences: the Southeastern Conference (SEC), Big 10, Pacific-10 (Pac-10), Big 8, Southwest Conference (SWC), Western Athletic Conference (WAC), PCAA (which later changed its name to the Big West), Missouri Valley Conference, Southern Conference, Atlantic Coast Conference (ACC), Mid-American Conference (MAC), and the Ivy League. The Ivy League and the Southern Conference left for Division I-AA prior to the 1982 season, while the Missouri Valley Conference stopped sponsoring football prior to the 1985 season. In 1991, the Big East recruited several independents and began sponsoring football, becoming a major conference. In 1996, Conference USA (C-USA), formed the previous year by the merger of the non-football Metro and Great Midwest Conferences, also began sponsoring football. That same year, the Southwest Conference dissolved, and four of its former members joined with the Big 8 to form the Big 12 Conference. In 1999, eight schools broke away from the WAC to form the Mountain West Conference (MW). Prior to the 2000 season, the Big West stopped sponsoring football. The Sun Belt Conference began sponsoring football in 2001. After periods of conference realignment in 2005 and the early 2010s that saw the expansion of the ACC, Big 10, SEC, and Pac-10 (which changed its name to the Pac-12), the WAC reorganized as a non-football conference and the Big East split into the American Athletic Conference and a new non-football conference that retained the Big East name.[52]

Current conferences See also: List of NCAA Division I FBS football programs Most of the 130 FBS schools are members of an FBS conference, but there are also a small number of independent schools. Since the Western Athletic Conference discontinued football sponsorship prior to the 2013 season, there have been ten conferences in the FBS. All of the FBS conferences have between ten and fourteen members, although independent Notre Dame has a scheduling agreement with the fourteen-member ACC. The ten conferences are split into two groups for the purposes of the College Football Playoff. The "Power Five conferences" consist of most of the largest and best-known college athletic programs in the country. A school from one of the Power Five conferences won every BCS National Championship Game (which operated from 1999 to 2014), and has won every College Football Playoff National Championship. The remaining five conferences are known as the "Group of Five."[53] Any conference may split its teams into two divisions,[54] and only the American Athletic Conference and Big 12 Conference do not use divisions. The American had used divisions before UConn left the league in July 2020, while the Big 12 has not used divisions since the early-2010s conference realignment left it with 10 members. As of the 2018 season, all conferences hold a championship game that determines the conference champion. The Sun Belt was the last conference to launch a championship game, as well as the most recent to split into divisions for football, with both the title game and the divisional alignment debuting in 2018. That conference chose to form football divisions despite having only 10 football members.[12]

Conference Nickname Founded Football Members Sports Headquarters American Athletic Conference The American (official) AAC (informal) 1979[e] 11[f] 22 Irving, Texas Atlantic Coast Conference† ACC 1953 14[g] 27 Greensboro, North Carolina Big 12 Conference† Big 12 1996 10 21 Irving, Texas Big Ten Conference† Big Ten, B1G 1896 14 28 Rosemont, Illinois Conference USA C-USA 1995[h] 14 19 Dallas, Texas Division I FBS Independents[i] 7 Mid-American Conference MAC 1946 12 24 Cleveland, Ohio Mountain West Conference MW (official) MWC (informal) 1999 12[j] 19 Colorado Springs, Colorado Pac-12 Conference† Pac-12 1915[k] 12 24 San Francisco, California Southeastern Conference† SEC 1932 14 20 Birmingham, Alabama Sun Belt Conference Sun Belt (official) SBC (informal) 1976 10[l] 18 New Orleans, Louisiana † "Big Five" or "Power Five" conferences with guaranteed berths in the "access bowls" associated with the College Football Playoff

Notes Includes the College Football Playoff National Championship, which involves the winners of two semifinal bowl games. Based on 78 teams qualifying for bowl games. While the Ivy League prohibits athletic scholarships across all sports, the Pioneer Football League prohibits scholarships only in football, and Georgetown chooses not to offer football scholarships, wins against such schools may potentially count toward bowl eligibility. NCAA rules interpretations allow academic aid to count toward the 90% requirement. This issue came up in the 2017 season when Florida State was thought to be bowl-ineligible because one of its six wins that season was over Delaware State, a school that did not meet the 90% requirement with football-related aid. However, once academic aid was counted, Delaware State met the threshold and FSU played in its bowl game.[19] Includes numbers for the Big East in 1993 and 2003. The conference was founded in 1979 as the original Big East Conference. It renamed itself the American Athletic Conference following a 2013 split along football lines. The non-FBS schools of the original conference left to form a new conference that purchased the Big East name, while the FBS schools continued to operate under the old Big East's charter and structure. The American also inherited the old Big East's Bowl Championship Series berth for the 2013 season, the last for the BCS. Navy is a football-only member, and Wichita State is a full member that does not sponsor football. Notre Dame is a full member except in football, in which it remains independent. It has committed to play at least five games each season against ACC opponents, and to play each other ACC member at least once every three years. The conference was founded in 1995, with football competition starting in 1996. Note that "Independents" is not a conference; it is simply a designation used for schools whose football programs do not play in any conference. All of these schools have conference memberships for other sports. Since 2012, Hawaii has been a football-only associate member, with most of its remaining teams in the non-football Big West Conference. The charter of the Pac-12 dates only to the formation of the Athletic Association of Western Universities (AAWU) in 1959. However, the Pac-12 claims the history of the Pacific Coast Conference, which was founded in 1915 and began competition in 1916, as its own. Of the nine members of the PCC at the time of its demise in June 1959, five were charter members of the AAWU, and three of the four others joined the AAWU by 1964; only Idaho never joined the Pac-12. The PCC's berth in the Rose Bowl passed to the AAWU. The Sun Belt has 12 full members, but two of them, Little Rock and UT Arlington, do not sponsor football. Transition teams Georgia Southern University in Statesboro, Georgia joined the Sun Belt Conference upon transitioning to the FBS level in 2014. Prior to joining the Sun Belt, GASOU won six FCS (I-AA) national championships and have produced two Walter Payton Award winners. The Eagles first continuously fielded a football team in 1924; however, play was suspended for World War II and revived in 1981. The Eagles competed as an FCS independent from 1984 until 1992 as the Eagles' main conference at the time, the Trans America Athletic Conference (now known as the ASUN Conference), did not sponsor football, and as a member of the Southern Conference from 1993 until 2013, winning 10 SoCon championships.

The Georgia Southern Eagles finished their first FBS season 9–3 overall and was undefeated in Sun Belt Conference play at 8–0; winning the Sun Belt Conference championship outright in its first year as an FBS member. They were also the first team ever to go unbeaten in conference play in their first FBS season. Since the Eagles were under transitional status, the university filed for a postseason waiver to allow the Eagles to play in a bowl game; however, the NCAA denied Georgia Southern's waiver request and a subsequent appeal since enough full member FBS teams became bowl-eligible during the season.

Liberty University began their FBS transition process on July 1, 2017. The NCAA granted the school a waiver from its normal transition rules that require an invitation from an FBS conference before beginning the transition. The Flames played in the Big South Conference in 2017 but were not eligible for the FCS playoffs. For 2018 to 2022, the Flames became an FBS independent. The school initially intended to remain a Big South member in other sports until it received an invitation to an FBS conference,[55] but instead joined the non-football ASUN Conference in 2018.[56] Conference USA (C-USA) eventually announced in November 2021 Liberty's future addition to that conference, with Flames football moving to C-USA starting in the 2023 season.[57]

The most recent school to complete an FBS transition is Coastal Carolina University, which completed its FBS transition for the 2018 season. The Chanticleers' transition began with the school's move from the Big South to the Sun Belt Conference on July 1, 2016. Coastal competed as a non-football Sun Belt member in 2016–17, with the football team playing the 2016 season as an FCS independent. The school then joined Sun Belt football in 2017, playing a full conference schedule.[58]

The following FBS transitions will take effect on July 1, 2023, when James Madison University joins the Sun Belt after playing the 2022 season as an independent, as required and scheduled.[59][60] This is after James Madison's FCS conference Colonial Athletic Association (CAA) barred the Dukes from competing in or hosting team championships in any sport for that conference during the 2021–22 season according to CAA bylaws. However, the Dukes are eligible for at-large bids to all NCAA team championships.[61] Other outgoing FCS teams Jacksonville State and Sam Houston are moving to C-USA.[62]

Realignment The FBS has experienced several realignments since its formation in 1978, with many teams changing conferences, dropping out of the FBS, or moving up from the FCS. In 1982, the size of the division was cut considerably, and the Southern Conference and the Ivy League were demoted to the FCS.[63] In 1985, the Missouri Valley Conference stopped sponsoring football.[52] In the 1980s and 1990s, several independents joined conferences, dropped football, or joined the FCS. In the 1996 NCAA conference realignment, the Southwest Conference dissolved, and four Texas teams from that conference joined with the Big 8 schools to form the Big 12 Conference. The Western Athletic Conference expanded to sixteen members, but half of the schools left in 1999 to form the Mountain West Conference. Conference USA (C-USA) formed from a merger of the Metro Conference and the Great Midwest Conference, two conferences which had not sponsored football. The Big West stopped sponsoring football after the 2000 season, and was essentially replaced by the Sun Belt Conference, which added former Big West members and began sponsoring football in 2001. In the mid-2000s, the Big East added former basketball-only member Connecticut, while Temple left the conference (before eventually returning in 2013). During another phase of realignment in 2005, three schools jumped from the Big East to the ACC. The Big East responded by adding schools from Conference USA.[52]

College football underwent another major conference realignment in the first half of the 2010s. Members of the Big East left the conference to join the Big 12 and ACC. The Big 12 lost members to the SEC, the Pac-12, and the Big Ten, while the Big Ten also gained one former ACC member. The remaining members of the Big East split into two conferences: the American Athletic Conference ("The American") and a new conference that assumed the Big East name but does not sponsor football. The American added several schools from C-USA, but lost one school each to the ACC and Big Ten after its first season. In turn, C-USA added FCS schools and schools from the Sun Belt Conference. The Sun Belt Conference replenished its membership by adding FCS schools and schools from the Western Athletic Conference. The Mountain West lost schools to the Big 12, Pac-12, and the FBS independent ranks, and added several schools from the WAC. After several defections, leaving the conference with only two football-sponsoring schools remaining, the WAC dropped its sponsorship of football.[52]

The early-2010s realignment cycle also affected the FBS independent ranks. BYU left the MW in 2011 for football independence and the non-football West Coast Conference. In 2013, Idaho and New Mexico State, the last two football-sponsoring schools in the WAC, became FBS independents, but would return to their former football home of the Sun Belt Conference as football-only members the following year. Also in 2013, Notre Dame became a full but non-football member of the ACC, entering into a scheduling agreement with that conference that calls for the Fighting Irish football team to play five games each season against ACC schools, and to play each other ACC school at least once every three years. Finally, in 2015, Navy became a football-only member of The American, ending more than a century of football independence.[52]

Realignment has continued to this day, though at a considerably lower level, for the time being. Georgia Southern joined the Sun Belt Conference upon transitioning to the FBS level in 2014. The Eagles won the Sun Belt Conference championship outright in its first year as an FBS member. The 2016 season saw FCS Coastal Carolina join the Sun Belt Conference for non-football sports while beginning a transition to FBS football; the football team joined the Sun Belt in 2017. That season was also the last for Idaho and New Mexico State as Sun Belt football members. After 2017, New Mexico State returned to independent status, while Idaho downgraded to FCS football—becoming the first program ever to voluntarily do so—and added football to its all-sports membership in the Big Sky Conference. Also in 2016, UMass went independent after turning down an offer of full membership in the Mid-American Conference. Most recently, UConn went independent in 2020 when the school left The American to rejoin many of its historic basketball rivals in the current Big East Conference. Notre Dame competed under a full ACC schedule only also in 2020 in response to logistical concerns that arose from the effects of the COVID-19 pandemic in the United States.

Future realignment is scheduled to occur beginning in 2022, when James Madison competes as an FBS independent during its transition from the FCS,[60] and 2023, when the C-USA adds New Mexico State but loses Charlotte, Florida Atlantic, North Texas, Rice, UAB, and UTSA to The American, which will see Cincinnati, Houston, and UCF transfer to the Big 12. Additionally, the Sun Belt is expected to gain Marshall, returning Old Dominion, and Southern Miss also from C-USA, in addition to James Madison.[62] Also, BYU will give up its football independence and is joining the Big 12 also in 2023.[64] In turn, the Big 12 will see Texas and Oklahoma transfer to the SEC no later than 2025.[65]

Awards See also: College football national championships in NCAA Division I FBS Several awards are given each year to players and coaches in the FBS. Although all college football players are eligible for many of these awards (such as the Heisman Trophy), FBS players usually win these awards, and other awards (such as the Walter Payton Award) exist to honor players in other divisions and the FCS. In addition to the national awards listed below, FBS conferences also have their own awards, and several organizations release a yearly College Football All-America Team. In 1951, the National Football Foundation established the College Football Hall of Fame. Notable individual awards include:

Best/most valuable player: Heisman Trophy, Maxwell Award, Walter Camp Award, Archie Griffin Award, AP Player of the Year, SN Player of the Year, Lombardi Award (originally lineman/linebacker, but expanded to all players in 2016) Defensive player of the year: Chuck Bednarik Award, Bronko Nagurski Trophy, Lott Trophy Position awards: Dave Rimington Trophy (Center), Davey O'Brien Award and Manning Award (Quarterback), Dick Butkus Award (Linebacker), Doak Walker Award (Running back), Fred Biletnikoff Award (Wide receiver), Jim Thorpe Award (Defensive back), John Mackey Award (Tight end), Lou Groza Award (Placekicker), Outland Trophy (Interior lineman), Ray Guy Award (Punter), Ted Hendricks Award (Defensive end), Jet Award (Return Specialist) Non-positional playing awards: Paul Hornung Award (most versatile player), Burlsworth Trophy (top player who began his college career as a walk-on), Jon Cornish Trophy (top Canadian player) Coaching awards: Head coaches: AFCA Coach of the Year, Eddie Robinson Coach of the Year, SN Coach of the Year, Walter Camp Coach of the Year Award, Paul "Bear" Bryant Award, Home Depot Coach of the Year Award, AP Coach of the Year Assistants: Broyles Award, AFCA Assistant Coach of the Year Other awards: William V. Campbell Trophy, Wuerffel Trophy, Rudy Award, Amos Alonzo Stagg Award, Walter Camp Man of the Year, Theodore Roosevelt Award The NCAA does not officially name a national champion, but several other organizations name national champions and all conferences participate in the College Football Playoff in order to determine a champion. The winner of the College Football Playoff receives the College Football Playoff National Championship Trophy. The AP awards the AP National Championship Trophy, while the American Football Coaches Association awards the AFCA National Championship Trophy. The AFCA trophy was previously awarded to the winner of the BCS National Championship Game (a predecessor of the College Football Playoff National Championship game), which operated from 1999 to 2014. The Football Writers Association of America awarded the Grantland Rice Trophy until after the 2013 season, and the National Football Foundation awards the MacArthur Bowl. Since the disputed end of the 2003 season, the various organizations have been able to agree on a single national champion.

Maps of teams 1927 1927 map of teams 1956 1956 map of teams 1991 1991 map of teams 2021 2021 map of teams Transitioned schools Schools that have transitioned to the FBS Programs by state Alabama Team Nickname City Stadium Current conference First played Alabama Crimson Tide Tuscaloosa Bryant–Denny Stadium SEC 1892 Auburn Tigers Auburn Jordan–Hare Stadium SEC 1892 Jacksonville State Gamecocks Jacksonville Burgess-Snow Field ASUN (FCS in 2022)[a] 1903 South Alabama Jaguars Mobile Hancock Whitney Stadium Sun Belt 2009 Troy Trojans Troy Veterans Memorial Stadium Sun Belt 1909 UAB Blazers Birmingham Protective Stadium C-USA[b] 1991 Jacksonville State will move to C-USA in 2023. UAB will move to the American Athletic Conference in 2023. Arizona Team Nickname City Stadium Current conference First played Arizona Wildcats Tucson Arizona Stadium Pac-12 1899 Arizona State Sun Devils Tempe Sun Devil Stadium Pac-12 1897 Arkansas Team Nickname City Stadium Current conference First played Arkansas Razorbacks Fayetteville Donald W. Reynolds Razorback Stadium[a] SEC 1894 Arkansas State Red Wolves Jonesboro Centennial Bank Stadium Sun Belt 1911 Arkansas also plays select home games at War Memorial Stadium in Little Rock. California Team Nickname City Stadium Current conference First played California Golden Bears Berkeley California Memorial Stadium Pac-12 1886 Fresno State Bulldogs Fresno Bulldog Stadium MW 1921 San Diego State Aztecs San Diego Aztec Stadium MW 1921 San Jose State Spartans San José CEFCU Stadium MW 1893 Stanford Cardinal Stanford Stanford Stadium Pac-12 1891 UCLA Bruins Los Angeles Rose Bowl (Pasadena) Pac-12 1919 USC Trojans Los Angeles Los Angeles Memorial Coliseum Pac-12 1888 Colorado Team Nickname City Stadium Current conference First played Air Force Falcons Colorado Springs Falcon Stadium MW 1955 Colorado Buffaloes Boulder Folsom Field Pac-12 1890 Colorado State Rams Fort Collins Canvas Stadium MW 1890 Connecticut Team Nickname City Stadium Current conference First played UConn Huskies Storrs Pratt & Whitney Stadium (East Hartford) Independent 1896 Florida Team Nickname City Stadium Current conference First played FIU Panthers University Park Riccardo Silva Stadium C-USA 2002 Florida Gators Gainesville Ben Hill Griffin Stadium SEC 1906 Florida Atlantic Owls Boca Raton FAU Stadium C-USA[a] 2001 Florida State Seminoles Tallahassee Doak Campbell Stadium ACC 1902 Miami (FL) Hurricanes Coral Gables Hard Rock Stadium (Miami Gardens) ACC 1926 South Florida Bulls Tampa Raymond James Stadium The American 1997 UCF Knights Orlando Bounce House The American[b] 1979 Florida Atlantic will move to The American in 2023. UCF will move to the Big 12 Conference in 2023. Georgia Team Nickname City Stadium Current conference First played Georgia Bulldogs Athens Sanford Stadium SEC 1892 Georgia Southern Eagles Statesboro Paulson Stadium Sun Belt 1924 Georgia State Panthers Atlanta Center Parc Stadium Sun Belt 2010 Georgia Tech Yellow Jackets Atlanta Bobby Dodd Stadium ACC 1892 Hawaii Team Nickname City Stadium Current conference First played Hawaii Rainbow Warriors Honolulu Ching Athletics Complex[a] MW 1909 Temporary stadium during the demolition of the current Aloha Stadium, also in Honolulu, and its replacement by a new stadium on part of that venue's site. The new Aloha Stadium is currently scheduled to open in 2024. Idaho Team Nickname City Stadium Current conference First played Boise State Broncos Boise Albertsons Stadium MW 1933 Illinois Team Nickname City Stadium Current conference First played Illinois Fighting Illini Champaign–Urbana Memorial Stadium Big Ten 1890 Northern Illinois Huskies DeKalb Huskie Stadium MAC 1899 Northwestern Wildcats Evanston Ryan Field Big Ten 1876 Indiana Team Nickname City Stadium Current conference First played Ball State Cardinals Muncie Scheumann Stadium MAC 1924 Indiana Hoosiers Bloomington Memorial Stadium Big Ten 1887 Notre Dame Fighting Irish Notre Dame Notre Dame Stadium Independent 1887 Purdue Boilermakers West Lafayette Ross–Ade Stadium Big Ten 1887 Iowa Team Nickname City Stadium Current conference First played Iowa Hawkeyes Iowa City Kinnick Stadium Big Ten 1889 Iowa State Cyclones Ames Jack Trice Stadium Big 12 1891 Kansas Team Nickname City Stadium Current conference First played Kansas Jayhawks Lawrence David Booth Kansas Memorial Stadium Big 12 1890 Kansas State Wildcats Manhattan Bill Snyder Family Stadium Big 12 1896 Kentucky Team Nickname City Stadium Current conference First played Kentucky Wildcats Lexington Kroger Field SEC 1881 Louisville Cardinals Louisville Cardinal Stadium ACC 1910 Western Kentucky Hilltoppers Bowling Green Houchens Industries–L. T. Smith Stadium C-USA 1908 Louisiana Team Nickname City Stadium Current conference First played Louisiana Ragin' Cajuns Lafayette Cajun Field Sun Belt 1902 Louisiana Tech Bulldogs Ruston Joe Aillet Stadium C-USA 1901 LSU Tigers Baton Rouge Tiger Stadium SEC 1893 Tulane Green Wave New Orleans Yulman Stadium The American 1893 UL Monroe Warhawks Monroe Malone Stadium Sun Belt 1931 Maryland Team Nickname City Stadium Current conference First played Maryland Terrapins College Park Maryland Stadium Big Ten 1888 Navy Midshipmen Annapolis Navy–Marine Corps Memorial Stadium The American 1879 Massachusetts Team Nickname City Stadium Current conference First played Boston College Eagles Chestnut Hill Alumni Stadium ACC 1893 UMass Minutemen Amherst Warren McGuirk Alumni Stadium Independent 1879 Michigan Team Nickname City Stadium Current conference First played Central Michigan Chippewas Mount Pleasant Kelly/Shorts Stadium MAC 1896 Eastern Michigan Eagles Ypsilanti Rynearson Stadium MAC 1891 Michigan Wolverines Ann Arbor Michigan Stadium Big Ten 1879 Michigan State Spartans East Lansing Spartan Stadium Big Ten 1885 Western Michigan Broncos Kalamazoo Waldo Stadium MAC 1905 Minnesota Team Nickname City Stadium Current conference First played Minnesota Golden Gophers Minneapolis–Saint Paul Huntington Bank Stadium Big Ten 1882 Mississippi Team Nickname City Stadium Current conference First played Mississippi State Bulldogs Starkville[a] Davis Wade Stadium SEC 1895 Ole Miss Rebels Oxford Vaught–Hemingway Stadium SEC 1890 Southern Miss Golden Eagles Hattiesburg M. M. Roberts Stadium C-USA[b] 1912 Almost all of the Mississippi State campus, including the university's athletic facilities, is located in a part of unincorporated Oktibbeha County that is designated by the United States Postal Service as Mississippi State, Mississippi. Southern Miss will move to the Sun Belt Conference in 2023. Missouri Team Nickname City Stadium Current conference First played Missouri Tigers Columbia Faurot Field SEC 1890 Nebraska Team Nickname City Stadium Current conference First played Nebraska Cornhuskers Lincoln Memorial Stadium Big Ten 1890 Nevada Team Nickname City Stadium Current conference First played Nevada Wolf Pack Reno Mackay Stadium MW 1896 UNLV Rebels Paradise Allegiant Stadium MW 1968 New Jersey Team Nickname City Stadium Current conference First played Rutgers Scarlet Knights New Brunswick–Piscataway SHI Stadium Big Ten 1869 New Mexico Team Nickname City Stadium Current conference First played New Mexico Lobos Albuquerque Dreamstyle Stadium MW 1892 New Mexico State Aggies Las Cruces Aggie Memorial Stadium Independent[a] 1893 New York Team Nickname City Stadium Current conference First played Army Black Knights West Point Michie Stadium Independent 1890 Buffalo Bulls Buffalo–Amherst University at Buffalo Stadium MAC 1894 Syracuse Orange Syracuse Carrier Dome ACC 1889 North Carolina Team Nickname City Stadium Current conference First played Appalachian State Mountaineers Boone Kidd Brewer Stadium Sun Belt 1928 Charlotte 49ers Charlotte Jerry Richardson Stadium C-USA[b] 2013 Duke Blue Devils Durham Wallace Wade Stadium ACC 1888 East Carolina Pirates Greenville Dowdy–Ficklen Stadium The American 1932 NC State Wolfpack Raleigh Carter–Finley Stadium ACC 1892 North Carolina Tar Heels Chapel Hill Kenan Memorial Stadium ACC 1888 Wake Forest Demon Deacons Winston–Salem Truist Field ACC 1888 Ohio Team Nickname City Stadium Current conference First played Akron Zips Akron InfoCision Stadium–Summa Field MAC 1891 Bowling Green Falcons Bowling Green Doyt Perry Stadium MAC 1919 Cincinnati Bearcats Cincinnati Nippert Stadium The American[c] 1885 Kent State Golden Flashes Kent Dix Stadium MAC 1920 Miami (OH) RedHawks Oxford Yager Stadium MAC 1888 Ohio Bobcats Athens Peden Stadium MAC 1894 Ohio State Buckeyes Columbus Ohio Stadium Big Ten 1889 Toledo Rockets Toledo Glass Bowl MAC 1917 New Mexico State will move to the C-USA in 2023. Charlotte will move to The American in 2023. Cincinnati will move to the Big 12 Conference in 2023. Oklahoma Team Nickname City Stadium Current conference First played Oklahoma Sooners Norman Gaylord Family Oklahoma Memorial Stadium Big 12[a] 1895 Oklahoma State Cowboys Stillwater Boone Pickens Stadium Big 12 1901 Tulsa Golden Hurricane Tulsa Skelly Field at H. A. Chapman Stadium The American 1895 Oklahoma will move to the Southeastern Conference no later than 2025. Oregon Team Nickname City Stadium Current conference First played Oregon Ducks Eugene Autzen Stadium Pac-12 1894 Oregon State Beavers Corvallis Reser Stadium Pac-12 1893 Pennsylvania Team Nickname City Stadium Current conference First played Penn State Nittany Lions State College[a] Beaver Stadium Big Ten 1881 Pittsburgh Panthers Pittsburgh Heinz Field ACC 1890 Temple Owls Philadelphia Lincoln Financial Field The American 1895 Most of the Penn State campus, including the football stadium, lies outside the municipality of State College, instead lying in a portion of College Township designated by the U.S. Postal Service as University Park, Pennsylvania. South Carolina Team Nickname City Stadium Current conference First played Clemson Tigers Clemson Memorial Stadium ACC 1896 Coastal Carolina Chanticleers Conway Brooks Stadium Sun Belt 2003 South Carolina Gamecocks Columbia Williams-Brice Stadium SEC 1892 Tennessee Team Nickname City Stadium Current conference First played Memphis Tigers Memphis Liberty Bowl Memorial Stadium The American 1912 Middle Tennessee Blue Raiders Murfreesboro Johnny "Red" Floyd Stadium C-USA 1911 Tennessee Volunteers Knoxville Neyland Stadium SEC 1891 Vanderbilt Commodores Nashville Vanderbilt Stadium SEC 1890 Texas Team Nickname City Stadium Current conference First played Baylor Bears Waco McLane Stadium Big 12 1899 Houston Cougars Houston TDECU Stadium The American[a] 1946 North Texas Mean Green Denton Apogee Stadium C-USA[b] 1913 Rice Owls Houston Rice Stadium C-USA[c] 1912 Sam Houston Bearkats Huntsville Bowers Stadium WAC (FCS)[d] 1912 SMU Mustangs Dallas[e] Gerald J. Ford Stadium The American 1915 TCU Horned Frogs Fort Worth Amon Carter Stadium Big 12 1896 Texas Longhorns Austin Darrell K Royal–Texas Memorial Stadium Big 12[f] 1893 Texas A&M Aggies College Station Kyle Field SEC 1894 Texas State Bobcats San Marcos Bobcat Stadium Sun Belt 1904 Texas Tech Red Raiders Lubbock Jones AT&T Stadium Big 12 1925 UTEP Miners El Paso Sun Bowl C-USA 1914 UTSA Roadrunners San Antonio Alamodome C-USA[g] 2011 Houston will move to the Big 12 Conference in 2023. North Texas will move to The American no later than 2023. Rice will move to The American no later than 2023. Sam Houston will move to C-USA in 2023. Virtually all of the SMU campus, including the football stadium, lies in University Park, a separate city contained within the Dallas city limits. The U.S. Postal Service considers all locations within University Park to have a Dallas mailing address. Texas will move to the Southeastern Conference no later than 2025. UTSA will move to The American no later than 2023. Utah Team Nickname City Stadium Current conference First played BYU Cougars Provo LaVell Edwards Stadium Independent[a] 1922 Utah Utes Salt Lake City Rice–Eccles Stadium Pac-12 1892 Utah State Aggies Logan Maverik Stadium MW 1892 BYU will move to the Big 12 Conference in 2023. Virginia Team Nickname City Stadium Current conference First played James Madison Dukes Harrisonburg Bridgeforth Stadium CAA (FCS)[a] 1972 Liberty Flames Lynchburg Williams Stadium Independent[b] 1973 Old Dominion Monarchs Norfolk S. B. Ballard Stadium C-USA[c] 2009 Virginia Cavaliers Charlottesville Scott Stadium ACC 1888 Virginia Tech Hokies Blacksburg Lane Stadium ACC 1892 James Madison will join the Sun Belt in 2023. Liberty will move to the C-USA in 2023. Old Dominion will rejoin the Sun Belt in 2023. Washington Team Nickname City Stadium Current conference First played Washington Huskies Seattle Husky Stadium Pac-12 1889 Washington State Cougars Pullman Martin Stadium Pac-12 1893 West Virginia Team Nickname City Stadium Current conference First played Marshall Thundering Herd Huntington Joan C. Edwards Stadium C-USA[a] 1895 West Virginia Mountaineers Morgantown Milan Puskar Stadium Big 12 1891

Between 1995 and its peak in March 2000, the Nasdaq Composite stock market index rose 400%, only to fall 78% from its peak by October 2002, giving up all its gains during the bubble. During the crash, many online shopping companies, such as Pets.com, Webvan, and Boo.com, as well as several communication companies, such as Worldcom, NorthPoint Communications, and Global Crossing, failed and shut down.[4][5] Some companies that survived, such as Amazon.com and Qualcomm, lost large portions of their market capitalization, with Cisco Systems alone losing 86% of its stock value.[5]

Contents 1 Prelude to the bubble 2 The bubble 2.1 Spending tendencies of dot-com companies 2.2 Bubble in telecom 3 Bursting of the bubble 4 Aftermath 4.1 Job market and office equipment glut 4.2 Legacy 4.3 Companies 5 See also 6 References 7 Further reading Prelude to the bubble See also: 1990s economic boom The 1993 release of Mosaic and subsequent web browsers during the following years gave computer users access to the World Wide Web, popularizing use of the Internet.[6] Internet use increased as a result of the reduction of the "digital divide" and advances in connectivity, uses of the Internet, and computer education. Between 1990 and 1997, the percentage of households in the United States owning computers increased from 15% to 35% as computer ownership progressed from a luxury to a necessity.[7] This marked the shift to the Information Age, an economy based on information technology, and many new companies were founded.

At the same time, a decline in interest rates increased the availability of capital.[8] The Taxpayer Relief Act of 1997, which lowered the top marginal capital gains tax in the United States, also made people more willing to make more speculative investments.[9] Alan Greenspan, then-Chair of the Federal Reserve, allegedly fueled investments in the stock market by putting a positive spin on stock valuations.[10] The Telecommunications Act of 1996 was expected to result in many new technologies from which many people wanted to profit.[11]

The bubble As a result of these factors, many investors were eager to invest, at any valuation, in any dot-com company, especially if it had one of the Internet-related prefixes or a ".com" suffix in its name. Venture capital was easy to raise. Investment banks, which profited significantly from initial public offerings (IPO), fueled speculation and encouraged investment in technology.[12] A combination of rapidly increasing stock prices in the quaternary sector of the economy and confidence that the companies would turn future profits created an environment in which many investors were willing to overlook traditional metrics, such as the price–earnings ratio, and base confidence on technological advancements, leading to a stock market bubble.[10] Between 1995 and 2000, the Nasdaq Composite stock market index rose 400%. It reached a price–earnings ratio of 200, dwarfing the peak price–earnings ratio of 80 for the Japanese Nikkei 225 during the Japanese asset price bubble of 1991.[10] In 1999, shares of Qualcomm rose in value by 2,619%, 12 other large-cap stocks each rose over 1,000% in value, and seven additional large-cap stocks each rose over 900% in value. Even though the Nasdaq Composite rose 85.6% and the S&P 500 rose 19.5% in 1999, more stocks fell in value than rose in value as investors sold stocks in slower growing companies to invest in Internet stocks.[13]

An unprecedented amount of personal investing occurred during the boom and stories of people quitting their jobs to trade on the financial market were common.[14] The news media took advantage of the public's desire to invest in the stock market; an article in The Wall Street Journal suggested that investors "re-think" the "quaint idea" of profits,[15] and CNBC reported on the stock market with the same level of suspense as many networks provided to the broadcasting of sports events.[10][16]

At the height of the boom, it was possible for a promising dot-com company to become a public company via an IPO and raise a substantial amount of money even if it had never made a profit—or, in some cases, realized any material revenue. People who received employee stock options became instant paper millionaires when their companies executed IPOs; however, most employees were barred from selling shares immediately due to lock-up periods.[12][page needed] The most successful entrepreneurs, such as Mark Cuban, sold their shares or entered into hedges to protect their gains. Sir John Templeton successfully shorted stocks at the peak of the bubble during what he called "temporary insanity" and a "once-in-a-lifetime opportunity", shorting stocks just before the expiration of lockup periods ending 6 months after initial public offerings.[17][18]

Spending tendencies of dot-com companies Most dot-com companies incurred net operating losses as they spent heavily on advertising and promotions to harness network effects to build market share or mind share as fast as possible, using the mottos "get big fast" and "get large or get lost". These companies offered their services or products for free or at a discount with the expectation that they could build enough brand awareness to charge profitable rates for their services in the future.[19][20]

The "growth over profits" mentality and the aura of "new economy" invincibility led some companies to engage in lavish spending on elaborate business facilities and luxury vacations for employees. Upon the launch of a new product or website, a company would organize an expensive event called a dot com party.[21][22]

Bubble in telecom The bubble in telecom was called "the biggest and fastest rise and fall in business history".[23]

Partially a result of greed and excessive optimism, especially about the growth of data traffic fueled by the rise of the Internet, in the five years after the American Telecommunications Act of 1996 went into effect, telecommunications equipment companies invested more than $500 billion, mostly financed with debt, into laying fiber optic cable, adding new switches, and building wireless networks.[11] In many areas, such as the Dulles Technology Corridor in Virginia, governments funded technology infrastructure and created favorable business and tax law to encourage companies to expand.[24] The growth in capacity vastly outstripped the growth in demand.[11] Spectrum auctions for 3G in the United Kingdom in April 2000, led by Chancellor of the Exchequer Gordon Brown, raised £22.5 billion.[25] In Germany, in August 2000, the auctions raised £30 billion.[26][27] A 3G spectrum auction in the United States in 1999 had to be re-run when the winners defaulted on their bids of $4 billion. The re-auction netted 10% of the original sales prices.[28][29] When financing became hard to find as the bubble burst, the high debt ratios of these companies led to bankruptcy.[30] Bond investors recovered just over 20% of their investments.[31] However, several telecom executives sold stock before the crash including Philip Anschutz, who reaped $1.9 billion, Joseph Nacchio, who reaped $248 million, and Gary Winnick, who sold $748 million worth of shares.[32]

Bursting of the bubble See also: Early 2000s recession Two dot-com companies purchased ad spots for Super Bowl XXXIII, and 17 dot-com companies bought ad spots the following year for Super Bowl XXXIV.[33]

Historical government interest rates in the United States Around the turn of the millennium, spending on technology was volatile as companies prepared for the Year 2000 problem. There were concerns that computer systems would have trouble changing their clock and calendar systems from 1999 to 2000 which might trigger wider social or economic problems, but there was virtually no impact or disruption due to adequate preparation.[34]

On January 10, 2000, America Online, led by Steve Case and Ted Leonsis, announced a merger with Time Warner, led by Gerald M. Levin. The merger was the largest to date and was questioned by many analysts.[35]

On January 30, 2000, 12 ads of the 61 ads for Super Bowl XXXIV were purchased by dot-coms (sources state ranges from 12 up to 19 companies depending on the definition of dot-com company). At that time, the cost for a 30-second commercial cost between $1.9 million and $2.2 million.[36][37]

In 2000, Alan Greenspan, then Chair of the Federal Reserve, raised interest rates several times; these actions were believed by many to have caused the bursting of the dot-com bubble. According to Nobel laureate Paul Krugman, however, "he didn't raise interest rates to curb the market's enthusiasm; he didn't even seek to impose margin requirements on stock market investors. Instead, he waited until the bubble burst, as it did in 2000, then tried to clean up the mess afterward".[38] E. Ray Canterbery agrees with Krugman's criticism.[39]

On Friday March 10, 2000, the NASDAQ Composite stock market index peaked at 5,048.62.[40]

On March 13, 2000, news that Japan had once again entered a recession triggered a global sell off that disproportionately affected technology stocks.[41]

On March 15, 2000, Yahoo! and eBay ended merger talks and the Nasdaq fell 2.6%, but the S&P 500 rose 2.4% as investors shifted from strong performing technology stocks to poor performing established stocks.[42]

On March 20, 2000, Barron's featured a cover article titled "Burning Up; Warning: Internet companies are running out of cash—fast", which predicted the imminent bankruptcy of many Internet companies.[43] This led many people to rethink their investments. That same day, MicroStrategy announced a revenue restatement due to aggressive accounting practices. Its stock price, which had risen from $7 per share to as high as $333 per share in a year, fell $140 per share, or 62%, in a day.[44] The next day, the Federal Reserve raised interest rates, leading to an inverted yield curve, although stocks rallied temporarily.[45]

On April 3, 2000, judge Thomas Penfield Jackson issued his conclusions of law in the case of United States v. Microsoft Corp. (2001) and ruled that Microsoft was guilty of monopolization and tying in violation of the Sherman Antitrust Act. This led to a one-day 15% decline in the value of shares in Microsoft and a 350-point, or 8%, drop in the value of the Nasdaq. Many people saw the legal actions as bad for technology in general.[46] That same day, Bloomberg News published a widely read article that stated: "It's time, at last, to pay attention to the numbers".[47]

On Friday, April 14, 2000, the Nasdaq Composite index fell 9%, ending a week in which it fell 25%. Investors were forced to sell stocks ahead of Tax Day, the due date to pay taxes on gains realized in the previous year.[48]

By June 2000, dot-com companies were forced to re-evaluate their spending on advertising campaigns.[49]

On November 9, 2000, Pets.com, a much-hyped company that had backing from Amazon.com, went out of business only nine months after completing its IPO.[50][51] By that time, most Internet stocks had declined in value by 75% from their highs, wiping out $1.755 trillion in value.[52]

In January 2001, just three dot-com companies bought advertising spots during Super Bowl XXXV.[53] The September 11 attacks accelerated the stock-market drop later that year.[54]

Investor confidence was further eroded by several accounting scandals and the resulting bankruptcies, including the Enron scandal in October 2001, the WorldCom scandal in June 2002,[55] and the Adelphia Communications Corporation scandal in July 2002.[56]

By the end of the stock market downturn of 2002, stocks had lost $5 trillion in market capitalization since the peak.[57] At its trough on October 9, 2002, the NASDAQ-100 had dropped to 1,114, down 78% from its peak.[58][59]

Aftermath After venture capital was no longer available, the operational mentality of executives and investors completely changed. A dot-com company's lifespan was measured by its burn rate, the rate at which it spent its existing capital. Many dot-com companies ran out of capital and went through liquidation. Supporting industries, such as advertising and shipping, scaled back their operations as demand for services fell. However, many companies were able to endure the crash; 48% of dot-com companies survived through 2004, albeit at lower valuations.[19]

Several companies and their executives, including Bernard Ebbers, Jeffrey Skilling, and Kenneth Lay, were accused or convicted of fraud for misusing shareholders' money, and the U.S. Securities and Exchange Commission levied large fines against investment firms including Citigroup and Merrill Lynch for misleading investors.[60]

After suffering losses, retail investors transitioned their investment portfolios to more cautious positions.[61] Popular Internet forums that focused on high tech stocks, such as Silicon Investor, RagingBull.com, Yahoo! Finance, and The Motley Fool declined in use significantly.[62]

Job market and office equipment glut Layoffs of programmers resulted in a general glut in the job market. University enrollment for computer-related degrees dropped noticeably.[63][64]

Aeron chairs, which retailed for $1,100 each and were the symbol of the opulent office furniture of dot-com companies, were liquidated en masse.[65]

Legacy As growth in the technology sector stabilized, companies consolidated; some, such as Amazon.com, eBay, and Google gained market share and came to dominate their respective fields. The most valuable public companies are now generally in the technology sector.

In a 2015 book, venture capitalist Fred Wilson, who funded many dot-com companies and lost 90% of his net worth when the bubble burst, said about the dot-com bubble:

A friend of mine has a great line. He says "Nothing important has ever been built without irrational exuberance." Meaning that you need some of this mania to cause investors to open up their pocketbooks and finance the building of the railroads or the automobile or aerospace industry or whatever. And in this case, much of the capital invested was lost, but also much of it was invested in a very high throughput backbone for the Internet, and lots of software that works, and databases and server structure. All that stuff has allowed what we have today, which has changed all our lives... that's what all this speculative mania built.[66]

Companies 3Com: Shares soared after announcing the corporate spin-off of Palm, Inc. 360networks: A fiber optic company that had a market capitalization of over $13 billion but filed for bankruptcy a few months later. AboveNet: Its stock rose 32% on the day it announced a stock split. Actua Corporation (formerly Internet Capital Group): A company that invested in B2B e-commerce companies, it reached a market capitalization of almost $60 billion at the height of the bubble, making Ken Fox, Walter Buckley, and Pete Musser billionaires on paper. Airspan Networks: A wireless firm; in July 2000, its stock price doubled on its first day of trading as investors focused on telecommunications companies instead of dot-com companies.[67] Akamai Technologies: Its stock price rose over 400% on its first day of trading in October 1999. AltaVista: A Web search engine established in 1995. It became one of the most-used early search engines, but lost ground to Google and was purchased by Yahoo! in 2003. Alteon WebSystems: Its shares soared 294% on its first day of trading. Blucora (then InfoSpace): Founded by Naveen Jain, at its peak its market cap was $31 billion and was the largest Internet business in the American Northwest. In March 2000, its stock reached a price $1,305 per share, but by 2002 the price had declined to $2 a share.[68] Blue Coat Systems (formerly CacheFlow): Its stock price rose over 400% on its first day of trading in November 1999. Boo.com: An online clothing retailer, it spent $188 million in just six months. It filed for bankruptcy in May 2000.[69] Books-A-Million: A book retailer whose stock price soared from around $3 per share on November 25, 1998, to $38.94 on November 27, 1998, and an intra-day high of $47.00 on November 30, 1998 after it announced an updated website. Two weeks later, the share price was back down to $10. By 2000, the share price had returned to $3.[70] Broadband Sports: A network of sports-content websites that raised over $60 million before going bust in February 2001.[71] Broadcast.com: A streaming media website that was acquired by Yahoo! for $5.9 billion in stock, making Mark Cuban and Todd Wagner multi-billionaires. The site is now defunct.[72] CDNow: Founded by Jason Olim and his brother, it was an online retailer of compact discs and music-related products that reached a valuation of over $1 billion in April 1998. In 2000, it was acquired by Bertelsmann Music Group for $117 million and was later shut down. Chemdex.com: A company founded by David Perry that operated an online marketplace for businesses, it reached a market capitalization of over $7 billion despite minimal revenues. Cobalt Networks: Its stock price rose over 400% on its first day of trading; acquired by Sun Microsystems for $2 billion in December 2000. Commerce One: A business-to-business software company that reached a valuation of $21 billion despite minimal revenue.[73] Covad: Shares rose fivefold within months of its IPO. Cyberian Outpost: One of the first successful online shopping websites, it reached a peak market capitalization of $1 billion. It used controversial marketing campaigns including a Super Bowl ad in which fake gerbils were shot out of a cannon. It was acquired by Fry's Electronics in 2001 for $21 million, including the assumption of $13 million in debt.[74] CyberRebate: Promised customers a 100% rebate after purchasing products priced at as much as 10 times the retail cost. It went bankrupt in 2001 and stopped paying rebates.[75] Digex: one of the first Internet service providers in the United States, its stock price rose to $184 per share; the company was acquired for $1 per share a few years later.[76] Digital Insight: Its shares soared 114% on its first day of trading. Divine: Founded by Andrew Filipowski, it was modeled after CMGI. It went public as the bubble burst and filed for bankruptcy after executives were accused of looting a subsidiary. DoubleClick: An online advertising company that soared after its IPO, it was acquired by Google in 2007. eGain: Its stock price doubled shortly after its 1999 IPO. Egghead Software: An online software retailer, its shares surged in 1998 as investors bought up shares of Internet companies; by 2001, the company was bankrupt. eToys.com: An online toy retailer whose stock price hit a high of $84.35 per share in October 1999. In February 2001, it filed for bankruptcy with $247 million in debt. It was acquired by KB Toys, which later also filed for bankruptcy.[77] Excite: A web portal founded by Joe Kraus and others that merged with Internet service provider @Home Network in 1999 to become Excite@Home, promising to be the "AOL of broadband". After trying unsuccessfully to sell the Excite portal during a sharp downturn in online advertising, the company filed for bankruptcy in September 2001.[78] It was acquired by Ask.com in March 2004.[79] Flooz.com: A digital currency founded by Robert Levitan; it folded in 2001 due to lack of consumer acceptance. It was famous for having Whoopi Goldberg as its spokesperson.[80] Forcepoint (formerly Websense): It held an IPO at the peak of the bubble. Freei: Filed for bankruptcy in October 2000, soon after canceling its IPO. At the time, it was the 5th largest Internet service provider in the United States, with 3.2 million users.[81] Famous for its mascot, Baby Bob, the company lost $19 million in 1999 on revenues of less than $1 million.[82] Gadzoox: A storage area network company, its shares tripled on its first day of trading giving it a market capitalization of $1.97 billion; the company was sold 4 years later for $5.3 million. Geeknet (formerly VA Linux): A provider of built-to-order Intel personal computer systems based on Linux and other open source projects, it set the record for largest first-day price gain upon its IPO on December 9, 1999; after the stock priced at $30/share, it ended the first day of trading at $239.25/share, a 698% gain, making founder Larry Augustin a billionaire on paper.[83] GeoCities: Founded by David Bohnett, it was acquired by Yahoo! for $3.57 billion in January 1999[84] and was shut down in 2009.[85] Global Crossing: A telecommunications company founded in 1997; it reached a market capitalization of $47 billion in February 2000 before filing bankruptcy in January 2002.[86] theGlobe.com: A social networking service that launched in April 1995 and made headlines when its November 1998 IPO resulted in the largest first day gain of any IPO to date. CEO Stephan Paternot became a visible symbol of the excesses of dot-com millionaires and is famous for saying "Got the girl. Got the money. Now I'm ready to live a disgusting, frivolous life".[87] govWorks: Founded by fraudster Kaleil Isaza Tuzman; it was featured in the documentary film Startup.com.[88] Handspring: A PDA maker that was defunct by 2003, when it was purchased by Palm Inc. Healtheon: Founded by James H. Clark, merged with WebMD in 1999 with a stock swap valued at $7.9 billion[89] but eventually shut down. HomeGrocer: A public online grocer that merged with Webvan. Infoseek: Founded by Steve Kirsch, it was acquired by Disney in 1999; it was valued at $7 billion but eventually shut down. inktomi: Founded by Eric Brewer, it reached a valuation of $25 billion in March 2000; acquired by Yahoo! in 2003 for $241 million.[90] Interactive Intelligence: A telecommunications software company, founded by Donald E Brown, whose stock doubled on its first day of trading. Internet America: Its stock price doubled in a day in December 1999 despite no specific news about the company. iVillage: On its first day of trading in March 1999, its stock rose 255% to $84 per share.[91] It was acquired by NBC for $8.50 per share in 2006 and shut down. iWon: Backed by CBS, it gave away $1 million to a lucky contestant each month and $10 million in April 2000 on a half-hour special program that was broadcast on CBS.[92] Kozmo.com: Founded by Joseph Park, it offered one-hour local delivery of several items with no delivery fees from March 1998 until it went bust in April 2001.[93] Lastminute.com: Founded by Martha Lane Fox and Brent Hoberman, its IPO in the United Kingdom on March 14, 2000, coincided with the bursting of the bubble.[94] Shares placed initially at 380p sharply rose to 511p, but had collapsed to below 190p by the first week of April 2000.[95] The Learning Company (formerly SoftKey): Owned by Kevin O'Leary, it was acquired by Mattel in 1999 for $3.5 billion and sold a year later for $27.3 million.[96] Liquid Audio: Despite its stock doubling in value on its first day of trading in July 1999, its technology was obsolete by 2004. LookSmart: Founded by Evan Thornley, its value rose from $23 million to $5 billion within months, but it lost 99% of its value as the bubble burst. Lycos: Founded by Michael Loren Mauldin, under the leadership of Bob Davis, it was acquired by Terra Networks for $12.5 billion in May 2000.[97] It was sold in 2004 to Seoul, South Korea-based Daum Communications Corporation for $95.4 million.[98] MarchFirst: A web development company formed on March 1, 2000, by the merger of USWeb and CKS Group, it filed for bankruptcy and liquidation just over a year after it was formed. MicroStrategy: After rising from $7 to as high as $333 in a year, its shares lost $140, or 62%, on March 20, 2000, following the announcement of a financial restatement for the previous two years by founder Michael J. Saylor.[44] Net2Phone: A VoIP provider founded by Howard Jonas whose stock price soared after its 1999 IPO.[99] NetBank: A direct bank, its stock price per share fluctuated between $3.50 and $83 in 1999.[100] Netscape: After a popular IPO, it was acquired by AOL in 1999 for $4.2 billion in stock. Network Solutions: A domain name registrar led by Jim Rutt, it was acquired by Verisign for $21 billion in March 2000, at the peak of the bubble. NorthPoint Communications: Agreed to a significant investment by Verizon and a merger of DSL businesses in September 2000; however, Verizon backed out 2 months later after NorthPoint was forced to restate its financial statements, including a 20% reduction in revenue, after its customers failed to pay as the bubble burst. NorthPoint then filed for bankruptcy. After lawsuits from both parties, Verizon and NorthPoint settled out of court.[101] Palm, Inc.: Spun off from 3Com at the peak of the bubble, its shares plunged as the bubble burst. Pets.com: Led by Julie Wainwright, it sold pet supplies to retail customers before filing for bankruptcy in 2000.[50] PFSweb: A B2B company whose stock price doubled after its IPO. Pixelon: Streaming video company that hosted a $16 million dot com party in October 1999 in Las Vegas with celebrities including Chely Wright, LeAnn Rimes, Faith Hill, Dixie Chicks, Sugar Ray, Natalie Cole, KISS, Tony Bennett, The Brian Setzer Orchestra, and a reunion of The Who. The company failed less than a year later when it became apparent that its technologies were fraudulent or misrepresented. Its founder had been a convicted felon who changed his name. PLX Technology: Shares rose fivefold within months of its IPO. Prodigy: An ISP whose stock price doubled on its first day of trading. Pseudo.com: One of the first live streaming video websites, it produced its own content in a studio in SoHo, Manhattan and streamed up to seven hours of live programming a day on its website.[102] Radvision: A videotelephony company, its stock price rose 150% on its first day of trading. Razorfish: An Internet advertising consultancy, its stock doubled on its first day of trading in April 1999.[103] Redback Networks: A telecommunications equipment company, its stock soared 266% in its first day of trading, giving it a market capitalization of $1.77 billion.[104] Register.com: A domain name registrar, its stock soared after its IPO in March 2000, at the peak of the bubble. Ritmoteca.com: One of the first online music stores selling music on a pay-per-download basis and an early predecessor to the iTunes business model. It pioneered digital distribution deals as one of the first companies to sign agreements with major music publishers.[105] Steel Connect (formerly CMGI Inc.): a company that invested in many Internet startups; between 1995 and 1999, its stock appreciated 4,921%, but declined 99% when the bubble burst.[106] Savvis: A fiber optic company. Terra Networks: A web portal and Internet access provider in the US, Spain and Ibero-America. After its November 1999 IPO, its shares skyrocketed from an initial price of €11 to €158 in just three months. The price then sunk under €3 in a matter of weeks. In February 2005, the company was acquired by Telefónica. Think Tools: One of the most extreme symptoms of the bubble in Europe, this company reached a market valuation of CHF2.5 billion in March 2000 despite no prospects of having a product.[107] TIBCO Software: Its stock price rose tenfold shortly after its 1999 IPO. Tradex Technologies: A B2B e-commerce company, it was sold for $5.6 billion at the height of the bubble, making Daniel Aegerter a billionaire on paper. Transmeta: A semiconductor designer that attempted to challenge Intel, its IPO in November 2000 was the last successful technology IPO until the IPO of Google in 2004. The company shut down in 2009 after failing to execute. uBid: An online auction site founded in 1997 as a subsidiary of PCM, Inc. that went public in December 1998 at $15 per share before its stock price soared to $186 per share, a market value of $1.5 billion. United Online: An ISP formed by the merger of NetZero and Juno Online Services as the bubble burst. Usinternetworking Inc: Its stock price rose 174% on its first day of trading. UUNET: One of the largest Internet service providers, its stock price soared after its 1995 IPO; it was acquired in 1996. Verio: A web hosting provider, it was acquired for $5 billion at the peak of the bubble. VerticalNet: A host of 43 business-to-business (B2B) procurement portals that was valued at $1.6 billion after its IPO, despite having only $3.6 million in quarterly revenue.[108] Vignette Corporation: Its stock rose 1,500% within months after its IPO. WebChat Broadcasting System: the largest and most popular online chat, interactive and event network with around 3 million registered users, it was purchased by Infoseek in April 1998 for approximately $6.7 million; Go.com acquired Infoseek later in 1998, and closed WebChat in September 1999. Webvan: An online grocer that promised delivery within 30 minutes; it went bankrupt in 2001 after $396 million of venture capital funding and an IPO that raised $375 million and was folded into Amazon.com.[109] World Online: a Netherlands-based Internet service provider, it became a public company on March 17, 2000 at a €12 billion valuation, the largest IPO on the Euronext Amsterdam, and the largest European Internet company IPO. Yahoo!: A company that, under the leadership of Timothy Koogle, Jerry Yang, and David Filo acquired several companies for billions of dollars in stock, only to shut them down a few years later.