BYU had never won a bowl game in school history, having lost the 1974 Fiesta Bowl and 1976 Tangerine Bowl as well as the first two Holiday Bowls in 1978 and 1979. For the first 56 minutes of the 1980 Holiday Bowl, it seemed the Cougars were destined for another defeat. BYU's defense couldn't handle SMU's offense, as James ran for 225 yards and Dickerson added 110. With just four minutes left in the game, the Mustangs scored to take a commanding 45–25 lead. Many BYU fans started leaving the stadium. McMahon screamed at them, declaring that the game wasn't over yet. He promptly threw a touchdown pass to Matt Braga, and BYU recovered an onside kick. The Cougars quickly marched down the field, ending the drive with a 1-yard touchdown run by Scott Phillips. SMU's lead had now been trimmed to 45–39. The Cougar defense forced the Mustangs to punt on their next possession. BYU's Bill Schoepflin blocked the punt by SMU's Eric Kaifes with 13 seconds left. The Cougar offense took over at the 41-yard line, with a last chance to win the game. After throwing two incomplete passes, McMahon launched a Hail Mary into the end zone as time expired. Smothered by four SMU defenders, BYU tight end Clay Brown somehow managed to leap above them and haul in the football, scoring one of the most miraculous touchdowns in college football history. With the score tied, BYU's Kurt Gunther kicked the winning extra point to give the Cougars a miracle 46–45 victory. BYU scored 21 points in the last 2:33. McMahon completed 32 of 49 passes for 446 yards to share MVP honors with SMU's James. The final statistics were remarkably even: SMU racked up 25 first downs and 446 total yards; BYU finished with 23 first downs and 444 total yards.
Scoring summary
SMU - Dickerson 15-yard run touchdown
SMU - James 45-yard run touchdown
SMU - Safety
SMU - Garcia 42-yard field goal
BYU - Brown 64-yard pass touchdown from McMahon
SMU - James 3-yard pass touchdown from McIlhenny
SMU - Garcia 44-yard field goal
BYU - Sikahema 83-yard punt return touchdown
SMU - Dickerson 1-yard run
BYU - Brown 13-yard pass touchdown from McMahon
SMU - Garcia 42-yard field goal
BYU - Phillips 1-yard run touchdown
SMU - James 42-yard run touchdown
BYU - Braga 15-yard pass touchdown from McMahon
BYU - Phillips 1-yard run touchdown
BYU - Brown 41-yard pass touchdown from McMahon
Legacy
In 2003, ESPN's "Page 2" feature listed the 1980 Holiday Bowl as one of the top 10 greatest bowl games ever played. The game was placed in NCAA Football video games as a "College Classic", challenging players to recreate the ending. The challenge begins with the player as BYU, trailing 45–25. BYU and SMU were conference rivals in the WAC from 1996–98. SMU joined the WAC after the SWC disbanded.