CBS has a summary article here:
The original site with the odds is here:
Part of this is scheduling, as MSU gets Michigan at home and doesn't have to play Ohio State, Wisconsin, or Penn State from the Leaders division. Michigan obviously travels to Penn State and has to play Ohio State at home, so presumably the only good team in the conference Michigan will miss next year will be Wisconsin. Add that to the fact that tough road games seem like a guaranteed loss for Michigan over Hoke's first two years and you could see the Wolverines racking up enough losses to send Sparty back to the championship game.
I'm a little bit surprised they have Northwestern so low. They get MSU and Michigan at home, although I guess when you combine that with road games against Nebraska and Wisconsin and a home game against tOSU they don't get off so easy.
In any case, this is another exhibit in the horribleness of the current division configuration where MSU's cross-division rival is Indiana while Michigan's is Ohio State. It will be nice when no such arrangements exist any more.