https://en.wikipedia.org/wiki/Promotion_and_relegation
"In a system of promotion and relegation, the best-ranked team(s) in the lower division are
promoted to the higher division for the next season, and the worst-ranked team(s) in the higher division are
relegated to the lower division for the next season. In some leagues,
playoffs or qualifying rounds are also used to determine rankings."
It's a fun idea to think about. Generally, this type of league system would be for a sport that plays way more games per season than college football. Basketball could work decently, but if there are only 8 or 9 games to decide the promotion/relegation that's too small of a sample size I think.
There can be lots of ways to play with the scheduling, but normally there is a focus on playing the most games within a team's current grouping or division. If you're the top of that by whatever threshold or measurement then you move up and vice versa.
Do you draw the divisions by geography to start? Current ranking? 5 year average rank?
And does Kansas ever get out of the lowest division? In theory, they, or whatever lower tier team you focus on, would have a better chance at overall success due to playing the also lower-tiered teams of the conference more often.