you are correct, then I think how you have laid it would be better for the TX schools and also much better for BYU.
For the CHAMP game. You do the below:
1. 2 best overall conference records
2. If more than 2 teams, then you look at division records
3. Top 25 wins in conference
4. Margin of victory over opponents
5. Ranking
I am just pulling things out of my butt now, but I think they could figure out a way to make it work.