Unconfirmed theory of mine, since Becker and Fagan do not give direct answers to any interviewers who attempt to find out what their songs mean .
At the time this song was written, mid-70s, college football had few better teams than Alabama, and they often crushed their opponents. On the other end of the spectrum was a small Methodist college in North Carolina, who was terrible in football and went through at least one five year period in that decade losing 8 or more of their scheduled 10 games.
The school-Wake Forest, their mascot- Demon Deacons,
so, Deacon Blues? maybe, maybe not.