You may not agree with it, but bad losses are to teams outside the top 200. Pepperdine finished 4th in the 7th rated conference with a 17-12 record. We may hate it...but they aren't a "bad" loss officially. Still, the committee will look at both teams and say, "there is no way BYU should have lost twice to Pepperdine." It was bad...just not officially bad.