AUSTIN, Texas — In the inaugural year of the 12-team College Football Playoff, two Texas teams have earned a spot in the bracket. 

No. 5 Texas will host No. 12 Clemson for the first round, while No. 11 SMU will travel to No. 6 Penn State. 

The winner of the Texas-Clemson matchup will play No. 4 Arizona State in the quarterfinals at the Peach Bowl.

Texas (11-2) was an obvious pick despite their overtime loss to No. 2 Georgia Saturday night in the Southeastern Conference championship game, but No. 11 SMU captured the last open spot in the playoffs, edging out Alabama. 

Because SMU lost in the Atlantic Coast Conference title game to Clemson, their spot was not guaranteed. The Mustangs (11-2) had a less difficult schedule than Alabama (9-3), but ultimately, the selection committee went with them over the Crimson Tide. 

Before the CFP announcement show, the Associated Press released its final Top 25 poll of the season, and it had Alabama above SMU at 11th and 12th, respectively.

CFP committee chairman Warde Manuel told ESPN that it was a difficult decision choosing SMU over Alabama. 

“It was quite a debate,” Manuel said. “We value strength of schedule. ... We just felt that in this particular case SMU still had the nod.”

Whichever team wins the SMU-Penn State game, they will go on to play No. 3 Boise State in the Fiesta Bowl.

The tournament starts Dec. 20-21 with the 5-12 seeds competing to make it to the quarterfinals. The top-seeded teams of each of those matchups will be hosting the games: Texas, Penn State, Notre Dame and Ohio State. 

The winner of those games will take on the top four-seeded teams, who all received byes, in New Year’s Six bowls for the quarter and semi finals. All of this culminates in the national title game on Jan. 20 in Atlanta. 

Both Texas and SMU will play on Saturday, Dec. 21, with SMU at Penn State kicking off at noon and Clemson at Texas kicking off at 4 p.m. both on TNT.