Joe Rexrode is more sold on the possibility of a second BCS slot for the Big Ten, even with Penn State out of the national championship picture:
Now let’s look at the other (more likely) scenario: an MSU loss in Happy Valley. That would leave the Spartans at 9-3 overall, 6-2 in the league. If Ohio State wins its final two, that would virtually guarantee that Ohio State gets a second BCS bid for the Big Ten. If you don’t believe me, check the ACC, Big East and Pac-10. At-large candidates are lacking. OSU sells tickets and TV ads. It’s a cinch. And that would put MSU in the Capital One Bowl, likely against LSU or Georgia.
Regardless, it appears the Outback Bowl is the worst case scenario. Rexrode notes that technically Minnesota, Northwestern, or Iowa could get picked ahead of us–despite being lower in the Big Ten standings–but I really don’t see them passing up a 9-3 MSU team with a fan base like ours.