Mike Sealy of UCLA doesn't shy away from competition in practice, but tries to avoid "punishments" as a type of coaching. Sealy says his team dynamic normally approaches drills with a more relaxed mentality, but sometimes that can translate to being too unfocused. In that case, Sealy will employ consequences for the losing players.
Russ Rose of Penn State University determines his "punishments" by how much the losing team lost by in any given drill. For instance, if a team loses a drill by 10 reps and the punishment are suicide sprints - the team must perform 10 suicide sprints. His reasoning for this is that "every play matters," especially when the players are not told what the punishment is for losing.