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New Orleans was chosen over the Cotton Bowl in Arlington, Texas. Two weeks ago, SEC commissioner Mike Slive told ESPN.com those cities were the two finalists.
Sources said one of the factors why the Sugar Bowl was selected was the SEC's long history in New Orleans. An SEC team played in the inaugural Sugar Bowl in 1935 and SEC teams have been a staple with the bowl game since.
Besides New Orleans and Arlington, the other cities submitting bids for the Champions game were Atlanta, Houston and San Antonio.
The game will take the name of the Sugar Bowl as the Champions Bowl name was a temporary placeholder.