10:06 PM ET

Expansion of the College Football Playoff to 12 teams has been cleared.

The Rose Bowl will allow the College Football Playoff to expand in the final two seasons of the current contract, according to a source.

The formal announcement of the playoff expansion will be imminent, as any more steps towards an announcement are a formality.

The College Football Playoff Board of Managers voted in September to add 12 teams to the playoff.

With $450 million at stake in the final two years of the current contract, the path to expand in those two seasons has been fraught with difficulties.

The Rose Bowl was the final step in the negotiations. The Rose Bowl needed to change their contract to accommodate the new system. The Rose Bowl's cooperation was the last obstacle.

The Rose Bowl was given an ultimatum this week to agree to terms or face being shut out of the next television contract, according to a source.