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I'm probably not remembering correctly but I thought part of the stumbling block was that Paterno wanted two home games for every one road game with Syracuse and Pitt.
i believe that was later after PSU joined the Big 10 and had limited non-conference games to schedule. They wanted 2 for 1 from some teams to guarantee the 7 home games per year. I don't think that was a consideration in the proposed conference.