for curiosity sake, I am going to keep a timeline (for awhile, anyway).
December 7: B1G says "get your act together" [I speculate that the various Presidents and Chancellors were very very direct with Erickson during the meeting. "do this, do that, etc." also, imo, B1G did well by PSU with the timing; hardly a blip on the national radar and vanished a day later. No significant or lasting PR damage to PSU.]
December 9: PSU hired big-time Washington-uber-connected attorney Lanny Davis to personally advise Erickson. Excellent. Lewinsky/Impeachment > than PSU scandal. Davis will know what to do. Also, Davis "big" with the Democrats; B1G probably told Erickson that PSU has to play both sides of the fence. http://www.centredaily.com/2011/12/09/3014244/psu-hires-attorney-for-presidents.html
December 9-10: PSU cuts licensing arrangements with Paterno. Correct organizational move; PSU bigger than Paterno; Paterno is somewhat radioactive; move away from radioactivity (you can always return when toxicity declines). http://pennstate.scout.com/2/1137436.html
The "warning shot" fired yesterday at PSU by the B1G COP/C was serious. I have no doubt that the COP/C gave Rodney Erickson a giant earful about the perceived problems at PSU.
On these Boards and elsewhere, there was a lot of debate about what it meant and what "punishments" could be handed down by the B1G. Most of the analogies/examples/hypotheses were NCAA/football based.
However, upon further reflection, imo, the better analogies are going to flow from examples like the IMF and EU/Eurozone. Membership in those types of organizations come with various requirements and obligations. Failure to meet the obligations results in intervention by the governing body. "Ejection" is not the goal; you were made a member for a reason. "Destruction" or "harming" is not the goal; we are a membership, so what harms/devalues you, harms/devalues us all.
The goal is --- I can't think of the right word, but for now ---- the goal is "conformity." Example: something like this: "In the Euro trade zone, we want all economies to grow at a certain rate. Your tax rate is too high and is preventing the proper growth rate. We demand you change your tax rate."
With these analogies in mind, it is clear that the B1G will not be banning PSU football from tv or from the post-season. In fact, no limits or punishments or anything will be imposed upon any sports program (or research funding or anything else). As many pointed out yesterday, hurting PSU just hurts the B1G.
So, what will the B1G want?
If anything, it will be like what the IMF requires when a country defaults: institutional, organizational and personnel changes.