If you're successful, they add weight to your automobile or limit your engine's performance by adding something like intake restrictors. (NASCAR fans can think of it as "restrictor plates" for the winner.)

If a team makes the playoff, they lose 1 scholarship for 4 years. Win the championship, and you lose 2 scholarships for 4 years. If you make it 4 years in a row but never win it, you're down 4 scholarships. 4 years in a row with one championship, you're down 5 scholarships. Win it four years in a row, you're down 8 scholarships.